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HomeMy WebLinkAboutFIN 2023-05-08 COMPLETE AGENDA PACKET  The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk ’s Office at 206 -433-1800 (Tukwi laCityClerk@TukwilaWA.gov ) for assistance. City of Tukwila Finance and Governance Committee  Kate Kruller, Chair  Kathy Hougardy  De’Sean Quinn Distribution: K. Kruller K. Hougardy D. Quinn C. Delostrinos Johnson T. McLeod M. Abdi T. Sharp Mayor Ekberg D. Cline R. Bianchi C. O’Flaherty A. Youn L. Humphrey AGENDA MONDAY, MAY 8, 2023 – 5:30 PM THIS MEETING WILL BE CONDUCTED BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY. ON-SITE PRESENCE WILL BE IN THE DUWAMISH CONFERENCE ROOM (2ND FLOOR, 6300 SOUTHCENTER BOULEVARD) THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS MEETING IS: 1-253-292-9750, Access Code 965223169# Click here to: Join Microsoft Teams Meeting For Technical Support during the meeting call: 1 -206-433 -7 1 55. Item Recommended Action 1. BUSINESS AGENDA a. Amendment to Interlocal Agreement with Washington State Broadband Office for Private LTE Network. Joel Bush, Chief Technology Officer b. Capital facilities financing – Public Works Campus Phase 2. Brandon Miles, Business Relations Manager c. Monthly General Fund update (March 2023). Tony Cullerton, Deputy Finance Director d. Comprehensive Financial Sustainability Plan to include RFP (Request for Proposals) review. Vicky Carlsen, Finance Director e. City Council Rules of Procedure update. Laurel Humphrey, Legislative Analyst 2. MISCELLANEOUS a. Forward to 5/8 C.O.W. Meeting and 5/8 Special Meeting Consent Agenda. b. Forward to 5/22 C.O.W. and 6/5 Regular Meeting. c. Discussion only d. Discussion only e. Discussion only Pg.1 Pg.7 Pg.41 Pg.49 Pg.65 Next Scheduled Meeting: May 22, 2023 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Joel Bush, Chief Technology Officer BY: Eric Compton, TIS Franchise Analyst CC: Mayor Ekberg DATE: May 1st, 2023 SUBJECT: Private LTE / CBRS Proof of Concept Funding - Interlocal Agreement Revision ISSUE TIS is seeking Council authorization to amend the recently adopted Interlocal Agreement with the Washington State Department of Commerce. BACKGROUND On March 20th, 2023 the Mayor was authorized to sign an Interagency agreement with the Washington State Department of Commerce, Broadband Office to deploy a Private LTE Proof of Concept to fund the deployment of the Infrastructure with up to $1,000,000. DISCUSSION An additional $400,000 has been made available for the project which brings the total project cost to $1,400,000. The funds cover the cost of the deployment, a contingency, and the purchase 600 Private LTE compatible Chromebooks. FINANCIAL IMPACT There will be limited financial impact in conducting the Private LTE network, but some staff time will be required to determine connectivity of cellular sites to the City or network. In our current discussions, the State Broadband Office will provide enough funds for all infrastructure and three (3) years of spectrum license fees and managed services. Spectrum license and managed service fees of $94,000 per year will need to be part of the 2025/2026 budget discussions if Tukwila wishes to continue beyond the initial POC. RECOMMENDATION The Finance and Governance Committee is being asked to approve and forward to the 5/8/23 Committee of the Whole and Special Meeting Consent Agenda to authorize the Mayor to sign the amended Interagency Agreement with the Washington State Department of Commerce, Broadband Office. ATTACHMENTS Revised Interlocal Agreement 1 2 Department of Commerce Contract Number: 23-66233-014 Washington State Department of Commerce Local Government Division Washington State Broadband Office 1. Contractor 2. Contractor Doing Business As (optional) City of Tukwila 12424 42nd Ave S Tukwila, WA 98168 DBA Tukwila Community Center 3. Contractor Representative (only if updated) 4. COMMERCE Representative (only if updated) Joel Bush Chief Technology Officer (206) 919-5943 Joel.Bush@TukwilaWA.gov Connie Rivera Broadband Infrastructure Programs Manager 360-704-9535 Connie.rivera@commerce.wa.gov PO Box 42525 1011 Plum Street SE Olympia, WA 98504 5. Original Contract Amount (and any previous amendments) 6. Amendment Amount 7. New Contract Amount $1,000,000 $400,400 $1,400,400 8. Amendment Funding Source 9. Amendment Start Date 10. Amendment End Date Federal: State: X Other: N/A: Upon execution date June 30, 2023 11. Federal Funds (as applicable): N/A Federal Agency: N/A CFDA Number: N/A 12. Amendment Purpose: The City of Tukwila will deploy an outdoor private wireless solution to connect students to quality broadband with a focus on the neighborhoods of Allentown, Tukwila Hill, and Tukwila International Boulevard. Network coverage has been designed to provide wireless broadband service in the “hotspots” shown in the Student Internet Need Analysis heat map . COMMERCE, defined as the Department of Commerce, and the Contractor, as defined above, acknowledge and accept the terms of this Contract and Attachments and have executed this Contract on the date below and warrant they are authorized to bind their respective agencies. The rights and obligations of both parties to this Contract are governed by this Contract and the following documents hereby incorporated by reference: Attachment “A” – Scope of Work and Budget. FOR CONTRACTOR FOR COMMERCE Allan Ekberg, Mayor Date Mark K. Barkley, Assistant Director, Local Government Division Date APPROVED AS TO FORM ONLY Sandra Adix Assistant Attorney General 3/20/2014 Date 3 2 This Contract is amended as follows: The purpose of this amendment is to modify revise the Scope of Work and amend funding to provide additional $. Original agreement award $1,000,000 and revised agreement $1,400,400. The SCOPE OF WORK and BUDGET is amended the original Scope of Work and Budget to add sales tax and to purchase approximately 600 chrome books a as stated in Attachment A. ALL OTHER TERMS AND CONDITIONS OF THIS CONTRACT AND AMENDMENTS REMAIN IN FULL FORCE AND EFFECT. 4 3 Attachment A Amended Scope of Work and Budget Department of Commerce, Washington State Broadband Office and City of Tukwila To amend the scope of work to add sales tax and to purchase approximately 600 PrivateLTE Chromebooks. Revised Budgetary Estimate Budget Estimate Equipment & Deployment $ 800,000 License Fees & Manage Services 200,000 Contingency 50,000 PrivateLTE Chromebooks (600) 227,400 Estimated Sales Tax 123,000 Project Total $1,400,400 5 6 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance FROM: David Cline, City Administrator Vicky Carlsen, Finance Director BY: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: March 6, 2023 Updated, March 21, 2023 Updated, April 3, 2023 Updated May 1, 2023 SUBJECT: Capital Facilities Financing, Public Works Campus, Phase 2 Report ISSUE This memo outlines the design costs, financing, and estimated construction cost for Public Works Operations Campus, Phase 2 (hereinafter “Public Works Phase 2”) capital construction project. Working drafts of this memo have been presented to the Finance and Governance Committee on March 13, March 27, and April 10. Staff is requesting authorization to execute contracts for full design and pre-construction of Public Works Phase in the amount of $5,195,141, with an additional $779,271 being set aside as owner’s contingency. The design and pre-construction work is anticipated to run from contract execution in 2023 through the start of the construction phase in May of 2025. BACKGROUND I. Overview of the Public Safety Plan and Public Works Phase Operations Campus The following provides a brief overview of the City’s recent investment in public facilities over the last 15 years. a. Development of the Public Safety Plan In 2008 the City completed a comprehensive seismic study of city buildings, which was recently updated in 2022. This report found that several buildings, including fire stations and public works shops, would be unusable after an earthquake. It was this study that was the impetus for the City to begin examining how to invest in upgraded facilities, specifically public safety buildings (fire stations, police, municipal court, emergency management and public works functions). In 2015, after a two-year process, the City Council was presented a report entitled, “Investing in Tukwila: Essential Governmental Services Facilities Plan 2015-2040.” The plan recommended the construction and/or replacement of several public safety buildings, including a new justice center to house police, emergency management and municipal court; the replacement of three fire stations; and a combined public works operations facility. The plan also included recommendations for City Hall and the 6300 building. 7 INFORMATIONAL MEMO Page 2 This final report was presented to the City Council by the Facilities Committee, made up of community members, council members, and staff. This Committee recommended a public safety facilities ballot measure, which resulted in the City Council adopting the “Public Safety Plan” to prioritize:  the construction of three replacement fire stations,  a new justice center (police, emergency management and municipal court),  a consolidated public works shop, and  a funding plan for 20 years of fire apparatus and equipment. In November 2016 Tukwila voters approved the public safety plan bond measure with 60.5% approval. Funds from the bond measure were used for the new fire stations, fire equipment and apparatus and the justice center. Separately, funding for the public works facilities would come from a variety of sources, including general fund and utility funds. In 2018, this financing and expenditure plan was updated with the D-20 Model, adopted by the City Council and discussed further below. In 2018 the City began to identify and acquire land for the public safety plan, based upon the recommendations of the community Siting Advisory Committee. Existing City owned land was used for two of the new fire stations (51 and 52); the City assembled land on Tukwila International Blvd for the Justice Center; and the City acquired three parcels in the north end of the City for a consolidated public works shop. Public Works Operations Campus Phase 1 (hereinafter “Public Works Phase 1”) entailed the construction of the west side of the property and moving the City’s fleet and facilities functions from George Long to the new site. Public Works Phase 2 will entail work on the east side of the property and will eventually allow the City to move the street and utilities functions from the Minkler Shops to the site, as well as consolidating other functions currently found on other sites, such as spoils storage, etc. The Justice Center and Fire Station 51 went operational in 2020 and Fire Station 52 become operational in 2021. The Fleet and Facilities building became operational in 2022 (Public Works Phase 1). In 2022, the City Council authorized the test to fit work for the eastern portion of the Public Works Phase 2 - Operations Campus, which will conclude in March of 2023. Due to costs the relocated Fire Station 54 was deferred. The Public Works Operations Campus is the final project remaining from the Public Safety Plan. Funding for design of the Public Works Operations Campus was adopted in the 2023-2024 Budget and construction costs were included in the 2023-2028 Capital Improvement Plan starting in 2025. b. Siting of the Consolidated Public Works Shops Facilities As briefly discussed above, the City utilized a “Siting Advisory Committee” to assist with identifying possible locations for the replacement fire stations, the new Justice Center, and the Consolidated Public Works Shops Facilities. The City Council received the final report on the recommendations of the Siting Advisory Committee on October 16, 2017. Since all of the buildings constructed for the public safety plan, which includes the consolidated Public Works Shops Facilities, have a public safety role, the City identified several critical siting factors for the for the future locations:  The properties needed to be out of the floodplain and/or not protected by a levee. Old Fire Station 51 did not meet this requirement and the new Fire Station 51 was located just above the valley floor. Minkler Shops does not meet this requirement. 8 INFORMATIONAL MEMO Page 3  Not be in a possible soil liquefaction area in order to mitigate risk during an earthquake.  Specific to the consolidated public works shops was that the property not be located in residential areas.  All facilities had to be permitted in the City’s underlying zoning. Based upon this broad criterion, the City Siting Advisory Committee examined a total of ten parcels, all in the City’s Manufacturing Industrial Center zoning classification. Three parcels were ultimately recommended by the Siting Advisory Committee and the City Council authorized the use of eminent domain to acquire the properties. The City reached deals with all three property owners and has or will take title to all the properties by November 1, 2023. c. Financing the Public Safety Plan- the D-20 Model In 2018, due to cost escalation from market conditions and initial estimates based on incomplete data, the City created options for the Public Safety Plan. Throughout the first half of 2018, the City Council’s Finance Committee, together with staff, deliberated on a variety of financing options (A, B, C1, C2 and D) to support the Public Safety Plan. In June 2018, the City Council adopted their recommendation of option D-20 which directed the:  Construction of two new fire stations (51 & 52) and the Justice Center  Dedication of $30 million for land acquisition, building upgrades and master planning for public works shops.  Fire apparatus and equipment funding for ten years  Issuance of 20-year bonds.  Use of a variety of financial sources (e.g. Limited Term General Obligation Bonds (LTGO), Fire impact fees, land sales and one-time funds, ongoing REET 1, General Fund.) This long-range model – D20 - (2018-2039) has been updated several times to reflect changing revenues and expenditures. 1. All major projects in the D-20 model are now complete as originally anticipated in 2018. The following is a basic overview of the revenue and expenditures to date in the D-20 Model. The work outlined below includes all land acquisition costs (Justice Center, Fire Station 54, and Public Works Operations Campus) construction to date for Fire Stations 51 and 52, Justice Center and Public Works phase 1 (fleet and facilities); interim improvements on Minkler; and planning and test to fit associated with Public Works Phase2. In addition, the initial planning for the Teen and Senior Center was funded from unused budget leftover from the Justice Center and therefore funded from the D-20 model. The only remaining items are finishing the roof and siding updates for the Public Works Phase 1 and the final payment for the 2022 fire engine, which is expected in 2025. 2. The D-20 Model accounted for all financial aspects of these projects. Data incorporated two capital project funds, 305 and 306 as well as all debt service funds and other funds that contributed funding sources (general fund, 301, utility funds). Note, revenues are forecasted to be higher than expenditures due to financing costs. 3. Other Changes. Sales Tax Mitigation funds were significantly reduced from 2019 to 2020 due to the loss of ongoing Sales Tax Mitigation payments. Council adopted CARES funding for project costs associated with COVID supply chain delays and added Teen/Senior Center planning from unspent Justice Center budgeted funds. Additional general fund and utility fund payments were adopted in 2022 to continue the public safety plan efforts for the consolidated public works shop. 9 INFORMATIONAL MEMO Page 4 4. Assuming a successful annexation vote to the Puget Sound Regional Fire Authority (PSRFA), capital acquisition responsibilities for future fire equipment and apparatus shift to PSRFA in 2025. A portion of the proceeds from completed land sales (Travelers Choice and HealthPoint) and approved (still pending) George Long sale are currently budgeted to support remaining public safety plan financing requirements as well as Public Works Phases 1 and 2. 5. Land Sales, originally contemplated in the D-20, are no longer required in their entirety. a. The updated D-20 model (December, 2022) removes future land sales. b. Future City Council direction will be needed on use of land revenue (e.g. lease or sale) for capital facility planning. c. Completing the Public Safety Plan – Design and Construction of Consolidated Public Works Shops, Phase 2 The last remaining item in the Public Safety Plan is Public Works Phase 2. This will allow the City to move off of the Minkler Shops site. The City is still providing critical public works activities at the Minkler Shops under older, inefficient conditions. In addition, as part of the Public Safety Plan, the City identified a goal to move all critical facilities out of flood-prone areas and the Minkler Shops is located directly behind a levee that has significant concerns. Original Updated Updated Updated June 2018 Dec 2019 Dec 2020 Dec 2022 EXPENDITURES Fund 305: Public Safety Plan 114,730,235$ 122,627,139$ 120,510,023$ 109,804,786$ Justice Center 68,570,005$ 66,864,711$ 65,747,697$ 65,995,940$ Fire Stations 30,334,435$ 39,936,632$ 38,936,530$ 37,791,730$ Fire Equipment/Apparatus/Financing 15,825,796$ 15,825,796$ 15,825,796$ 6,017,117$ Fund 306: City Facilities 30,000,000$ 35,700,000$ 36,200,000$ 43,150,491$ PW Shops Phase I $30,000,000 $35,700,000 $35,700,000 $36,405,462 Minkler Improvements $500,000 $500,000 Teen/Senior Center $395,030 PW Operations Campus Phase 2 $5,850,000 TOTAL $144,730,235 $158,327,139 $156,710,023 $152,955,277 REVENUES Voted Bonds (UTGO) 77,385,000$ 77,997,026$ 77,997,026$ 77,997,026$ Councilmanic Bonds (LTGO) 40,000,000$ 45,500,600$ 45,500,600$ 45,500,600$ Fire Impact Fees (Tukwila South- FS 51) 4,750,000$ 4,750,000$ 4,750,000$ 4,750,000$ Fire Impact Fee- ongoing 8,517,000$ 9,817,000$ 9,497,000$ 8,244,202$ Fund 301 Transfer- REET Funds 3,000,000$ 3,000,000$ 3,000,000$ 3,500,000$ Land Sales 15,038,000$ 13,053,090$ 13,518,000$ 3,014,845$ REET 1 - Ongoing Support 12,813,091$ 12,813,091$ 12,852,409$ 11,000,000$ Sales Tax Mitigation 4,017,425$ 665,909$ 665,909$ Cares Act 300,000$ 497,247$ Investment Earning 707,845$ 1,480,824$ 1,725,661$ 1,626,356$ Project Contribution (TeenSenior)600,000$ Project Contribution (General Fund) 141,854$ 2,991,854$ 2,991,854$ 5,950,954$ Project Contribution (Utility Fund) 141,854$ 3,791,854$ 4,291,854$ 7,791,854$ TOTAL 162,494,644$ 179,212,764$ 177,090,313$ 171,138,993$ D-20 MODEL FINANCIAL SNAPSHOT 2018-2022 10 INFORMATIONAL MEMO Page 5 Public Works has moved from George Long into Public Works Phase 1. On November 1, 2023 the City takes ownership of the east side of the property and the Council adopted a lease agreement through April of 2025 with the current tenant. The City Council authorized the “test- to-fit” work which developed design options for the entire combined public works site. The “test- to-fit” will provide the City better cost estimates for the final phase of the project. In March 2023, the “test-to-fit” was complete and the City Council was briefed on cost estimates for the full buildout and completion of Public Works Phase 2. d. Funding Test to Fit Before moving straight to design, the City Council directed staff to do additional planning and engagement with the City Council on the layout of the site, this was the “Test to Fit.” The total budget for the Test to Fit work is $350,000. This work occurred in 2022 and 2023. The work will be completed at or slightly below the budget. Funding for the Public Works Phase 2 has been a 50/50 split between the general fund and the utilities. e. Test to Fit Design Concepts The City Council as a whole and the Transportation and Infrastructure Committee were briefed as the Test to Fit process proceeded. Additionally, an open house was hosted to solicit impact from Tukwila community members. In March the project team presented to the City Council the various layout concepts considered by the project team. Concept “A” (below) scored the highest on the project team’s criteria and was also favored by Public Works Staff. Contract Title Firm Cost Test to Fit Design Miller Hayashi 203,337$ Geotech Exploration Langan 36,600$ Surveying David Evans and Associates 25,000$ Project Management Shiels Obletz Johnsen 78,238$ Total: 343,175$ Budget 350,000$ Remaining Contigency: 6,825$ 2022 Actual Expenditures: 185,124 2023 Budget Expenditures: 164,876 Source of Funds Utilities Water: 28,029$ Sewer 15,663$ Surface Water 38,746$ Subtotal: 82,438$ Other Funds General Fund: 82,438$ Test to Fit Analysis Cost 11 INFORMATIONAL MEMO Page 6 II. Public Works Phase 2, Financing a. The Next D-20 Model, Public Works Campus Financial Model The D-20 model was a successful tool the City Council approved to track all expenditures and revenues associated with the construction of the Public Safety Plan. Using the D-20 model as an example, staff has begun to put together a model that can used to track expenditures and revenues associated with Public Works Phase 2. Like the D-20 model, the model can be used to track the cash flow of the project, including the issuance of debt and annual debt payments. The model can also be easily modified to program in specific situations and changes in the funding and/or costs. 12 INFORMATIONAL MEMO Page 7 i. Scenario 1, Base Model The above model is the starting point for discussion. It assumes that the design and pre- construction costs in 2023, 2024 and 2025 are paid for in cash. In 2025 the City would issue a bond of just over $77 million to move forward with construction. It is likely that the City could reduce debt payments by spreading the bond issuance over 2025 and 2026 (this is what we did for the public safety bond) However, for simplicity the bond issuance was shown as occurring at one time. In 2026 the general fund would need to support debt payments of $2.6 million (discussed below), while the utilities would provide $2.5 million in rent to the general fund to be on the site. More discussion on the utilities rent payment is provided below. The general fund annual contributions begin to drop starting in 2028 and will continue to drop as the rent for the utilities increases based on a standard inflation rate. Expenditures 2023 2024 2025 2026 2027 2028 Design and Pre-Construction: 1,725,000$ 2,875,000$ 1,374,412$ -$ -$ -$ Other Soft Costs:-$ 23,377,588$ -$ -$ -$ Total Soft Costs: 1,725,000$ 2,875,000$ 24,752,000$ -$ -$ -$ 2023 Construction Cost Estimates:-$ -$ 23,417,500$ 23,417,500$ -$ -$ January 2026 Escalation:-$ -$ 3,839,000$ 3,839,000$ -$ -$ Total Hard Costs:-$ -$ 27,256,500$ 27,256,500$ -$ -$ Total Construction Costs: 1,725,000$ 2,875,000$ 52,008,500$ 27,256,500$ -$ -$ Debt Payments:-$ -$ -$ 1,557,812$ 5,168,232$ 5,168,232$ Total: 1,725,000$ 2,875,000$ 52,008,500$ 28,814,312$ 5,168,232$ 5,168,232$ Source of Funds 2023 2024 2025 2026 2027 2028 General Fund Lease from UPS: 237,021$ 824,575$ 280,646$ -$ -$ -$ Potential Additional REET 1 Funds: 50,000$ 50,000$ 406,560$ -$ -$ -$ Land Sales: 300,000$ 500,000$ -$ -$ -$ -$ Exceed Funds from 302 Fund: 275,479$ 62,925$ -$ -$ -$ Other General Fund Contribution:-$ -$ -$ -$ -$ -$ Proceeds from Bonds:-$ -$ 79,448,400$ -$ -$ -$ General Fund Debt Service:-$ -$ 0 -$ 2,668,232$ 2,593,232$ Funding from Partners:-$ -$ -$ -$ -$ -$ Grants:-$ -$ -$ -$ -$ -$ Park Impact Fee:-$ -$ -$ -$ -$ -$ Subtotal: 862,500$ 1,437,500$ 80,135,606$ -$ 2,668,232$ 2,593,232$ Utilities Water: 293,250$ 488,750$ 233,650$ -$ 850,000$ 875,500$ Sewer: 163,875$ 273,125$ 130,569$ -$ 475,000$ 489,250$ Surface Water: 405,375$ 675,625$ 322,987$ -$ 1,175,000$ 1,210,250$ Grants: Subtotal: 862,500$ 1,437,500$ 687,206$ -$ 2,500,000$ 2,575,000$ Total All Sources: 1,725,000$ 2,875,000$ 80,822,812$ -$ 5,168,232$ 5,168,232$ Starting Year Balance:-$ -$ 28,814,312$ (0)$ (0)$ Ending Year Fund Balance:-$ -$ 28,814,312$ (0)$ (0)$ (0)$ (S1) Total Construction Estimates, No Land Sales Towards Construction, 5% Bond, 30 Year Bond 13 INFORMATIONAL MEMO Page 8 ii. Scenario 2, Base Model, with Land Sales The base model with land sales assumes $9.5 million in land sales by 2025. The general fund debt contribution is reduced because of the land sales revenue. Expenditures 2023 2024 2025 2026 2027 2028 Design and Pre-Construction: 1,725,000$ 2,875,000$ 1,374,412$ -$ -$ -$ Other Soft Costs:-$ 23,377,588$ -$ -$ -$ Total Soft Costs: 1,725,000$ 2,875,000$ 24,752,000$ -$ -$ -$ 2023 Construction Cost Estimates:-$ -$ 23,417,500$ 23,417,500$ -$ -$ January 2026 Escalation:-$ -$ 3,839,000$ 3,839,000$ -$ -$ Total Hard Costs:-$ -$ 27,256,500$ 27,256,500$ -$ -$ Total Construction Costs: 1,725,000$ 2,875,000$ 52,008,500$ 27,256,500$ -$ -$ Debt Payments:-$ -$ -$ 1,557,812$ 4,550,244$ 4,550,244$ Total: 1,725,000$ 2,875,000$ 52,008,500$ 28,814,312$ 4,550,244$ 4,550,244$ Source of Funds 2023 2024 2025 2026 2027 2028 General Fund Lease from UPS: 237,021$ 824,575$ 280,646$ -$ -$ -$ Potential Additional REET 1 Funds: 50,000$ 50,000$ 406,560$ -$ -$ -$ Land Sales: 300,000$ 500,000$ 9,500,000$ -$ -$ -$ Exceed Funds from 302 Fund: 275,479$ 62,925$ -$ -$ -$ Other General Fund Contribution:-$ -$ -$ -$ -$ -$ Proceeds from Bonds:-$ -$ 69,948,400$ -$ -$ -$ General Fund Debt Service:-$ -$ 0 -$ 2,050,244$ 1,975,244$ Funding from Partners:-$ -$ -$ -$ -$ -$ Grants:-$ -$ -$ -$ -$ -$ Park Impact Fee:-$ -$ -$ -$ -$ -$ Subtotal: 862,500$ 1,437,500$ 80,135,606$ -$ 2,050,244$ 1,975,244$ Utilities Water: 293,250$ 488,750$ 233,650$ -$ 850,000$ 875,500$ Sewer: 163,875$ 273,125$ 130,569$ -$ 475,000$ 489,250$ Surface Water: 405,375$ 675,625$ 322,987$ -$ 1,175,000$ 1,210,250$ Grants: Subtotal: 862,500$ 1,437,500$ 687,206$ -$ 2,500,000$ 2,575,000$ Total All Sources: 1,725,000$ 2,875,000$ 80,822,812$ -$ 4,550,244$ 4,550,244$ Starting Year Balance:-$ -$ 28,814,312$ (0)$ (0)$ Ending Year Fund Balance:-$ -$ 28,814,312$ (0)$ (0)$ (0)$ (S2) Total Construction Estimates, Land Sales Going Towards Construction, 5% Bond, 30 Year Bond 14 INFORMATIONAL MEMO Page 9 iii. Scenario 3, Base Model, Land Sales and Lower Interest Rate The above model assumes $9.5 million in land sales by 2025, but also assumes that the bond issuance has an interest rate of 4 percent versus 5 percent. b. Funding Principles The following are general funding principles the City could use in the PW Phase 2 Model: 1. Revenue from land sales from existing public works facilities (George Long, Minkler, and Longacres) would go to support the build out of Public Works Phase 2. 2. The City could consider allocated other property transactions into Public Works Phase 2. 3. The utilities will pay their fair share for being on the City owned property. 4. The City will work to identify and engage partners who can help pay for the capital costs the buildout. However, the partners fund must be more than just contributing to the Expenditures 2023 2024 2025 2026 2027 2028 Design and Pre-Construction: 1,725,000$ 2,875,000$ 1,374,412$ -$ -$ -$ Other Soft Costs:-$ 23,377,588$ -$ -$ -$ Total Soft Costs: 1,725,000$ 2,875,000$ 24,752,000$ -$ -$ -$ 2023 Construction Cost Estimates:-$ -$ 23,417,500$ 23,417,500$ -$ -$ January 2026 Escalation:-$ -$ 3,839,000$ 3,839,000$ -$ -$ Total Hard Costs:-$ -$ 27,256,500$ 27,256,500$ -$ -$ Total Construction Costs: 1,725,000$ 2,875,000$ 52,008,500$ 27,256,500$ -$ -$ Debt Payments:-$ -$ -$ 1,557,812$ 4,045,123$ 4,045,123$ Total: 1,725,000$ 2,875,000$ 52,008,500$ 28,814,312$ 4,045,123$ 4,045,123$ Source of Funds 2023 2024 2025 2026 2027 2028 General Fund Lease from UPS: 237,021$ 824,575$ 280,646$ -$ -$ -$ Potential Additional REET 1 Funds: 50,000$ 50,000$ 406,560$ -$ -$ -$ Land Sales: 300,000$ 500,000$ 9,500,000$ -$ -$ -$ Exceed Funds from 302 Fund: 275,479$ 62,925$ -$ -$ -$ Other General Fund Contribution:-$ -$ -$ -$ -$ -$ Proceeds from Bonds:-$ -$ 69,948,400$ -$ -$ -$ General Fund Debt Service:-$ -$ 0 -$ 1,545,123$ 1,470,123$ Funding from Partners:-$ -$ -$ -$ -$ -$ Grants:-$ -$ -$ -$ -$ -$ Park Impact Fee:-$ -$ -$ -$ -$ -$ Subtotal: 862,500$ 1,437,500$ 80,135,606$ -$ 1,545,123$ 1,470,123$ Utilities Water: 293,250$ 488,750$ 233,650$ -$ 850,000$ 875,500$ Sewer: 163,875$ 273,125$ 130,569$ -$ 475,000$ 489,250$ Surface Water: 405,375$ 675,625$ 322,987$ -$ 1,175,000$ 1,210,250$ Grants: Subtotal: 862,500$ 1,437,500$ 687,206$ -$ 2,500,000$ 2,575,000$ Total All Sources: 1,725,000$ 2,875,000$ 80,822,812$ -$ 4,045,123$ 4,045,123$ Starting Year Balance:-$ -$ 28,814,312$ (0)$ (0)$ Ending Year Fund Balance:-$ -$ 28,814,312$ (0)$ (0)$ (0)$ (S3) Total Construction Estimates, Land Sales Going Towards Construction, 4% Bond, 30 Year Bond 15 INFORMATIONAL MEMO Page 10 marginal cost increases of the partner. Essentially, the City must receive funds above the cost incurred by the partner being on the property. 5. One-time funding sources for one-time expenses. 6. Others? c. Other Capital Needs Funds that are being allocated from land sales and REET 1 are potential funds that could be used for other one-time capital expenses, such as replacing the HVAC system at the Tukwila Community Center. The City has been successful in getting a state grant for the work and there is a federal appropriation also pending. d. Other Potential Sources of Revenue Many jurisdictions have been unable to spend their American Rescue Plan Act (ARPA) funds. There is a slight possibility that the City maybe able to secure additional ARPA funds to assist with the design work. If the City is successful, these funds could be used to meet the non- utilities funding for the design phase funds. III. Funding the Design and Pre-Construction Work The City’s project manager, SOJ, have secured quotes from professional firms to complete the design and pre-construction work for Public Works Phase 2. The total cost for all firms and work is $ $5,195,141, with an additional owner’s contingency of $779,271, for a total of $5,974,412. This work would be spread out in 2023, 2024, and 2025. Like with the Test to Fit work, the cost for the design and pre-construction was envisioned to be split 50/50 between the general fund and utilities. An additional $1,644,964 in non-utility funds would have to be used to support the design and pre-construction phase. Staff believes that using a combination of funds from excess REET 1, 302 (Urban Renewal), land sales revenue, and the ending fund balance of 306 can be used for these funds. Year 2023 2024 2025 Total Total Spend Per Year: 1,725,000$ 2,875,000$ 1,374,412$ 5,974,412$ Source of Funds General Fund Lease Revenue from UPS: 237,021$ 824,575$ 280,646$ 1,342,242$ Other Funds: 625,479$ 612,925$ 406,560$ 1,644,964$ Proceed from Land Sales:-$ Subtotal: 862,500$ 1,437,500$ 687,206$ 2,987,206$ Utilities Water: 293,250$ 488,750$ 233,650$ 1,015,650$ Sewer: 163,875$ 273,125$ 130,569$ 567,569$ Surface Water: 405,375$ 675,625$ 322,987$ 1,403,987$ Subtotal: 862,500$ 1,437,500$ 687,206$ 2,987,206$ Total All Sources: 1,725,000$ 2,875,000$ 1,374,412$ 5,974,412$ Design and Pre-Construction Projected Burn 16 INFORMATIONAL MEMO Page 11 a. Debt i. Financing Like most capital projects, the Public Works Operation’s Campus can be paid with a variety of revenue options, grants, and capital appropriations from other governmental entities. The City will have to issue a bond to pay for the overall construction costs. One way of looking at the construction costs is to look at how the City would pay the annual debt service for the project. ii. Bond Capacity Year LTGO Debt UTGO Debt Total Long- Term Debt Assessed Value %Change AV 1.5%2.5% Remaining Non-Voted Debt Capacity Remaining Total Debt Capacity 2017 35,014,277 32,990,000 68,004,277 6,184,943,263 7.31% 92,774,149 154,623,582 57,759,872 86,619,305 2018 48,358,749 31,875,000 80,233,749 6,685,919,176 8.10% 100,288,788 167,147,979 51,930,039 86,914,230 2019 71,439,055 68,405,000 139,844,055 7,351,973,382 9.96% 110,279,601 183,799,335 38,840,546 43,955,280 2020 72,205,534 67,035,000 139,240,534 7,883,057,562 7.22% 118,245,863 197,076,439 46,040,329 57,835,905 2021 73,117,643 66,335,000 142,302,643 8,010,892,032 1.62% 120,163,380 200,272,301 44,195,737 57,969,658 2022 70,734,706 65,375,000 138,650,706 8,970,452,548 11.98% 134,556,788 224,261,314 61,281,082 85,610,608 2023 64,094,790 63,595,000 129,921,790 9,374,122,913 4.50% 140,611,844 234,353,073 74,285,054 104,431,283 2024 59,643,954 61,615,000 123,181,954 9,795,958,444 4.50% 146,939,377 244,898,961 85,372,423 121,717,007 2025 55,602,406 59,210,000 116,426,406 10,236,776,574 4.50% 153,551,649 255,919,414 96,335,243 139,493,008 2026 51,941,964 56,565,000 109,811,964 10,697,431,520 4.50% 160,461,473 267,435,788 107,214,509 157,623,824 2027 48,157,300 53,660,000 102,813,300 11,178,815,938 4.50% 167,682,239 279,470,398 118,528,939 176,657,098 2028 44,231,450 50,485,000 95,403,450 11,681,862,655 4.50% 175,227,940 292,046,566 130,309,490 196,643,116 2029 40,164,314 47,025,000 87,567,314 12,207,546,475 4.50% 183,113,197 305,188,662 142,570,883 217,621,348 2030 36,414,928 43,290,000 79,773,928 12,756,886,066 4.50% 191,353,291 318,922,152 154,869,363 239,148,224 2031 32,218,328 39,270,000 71,488,328 13,330,945,939 4.50% 199,964,189 333,273,648 167,745,861 261,785,320 2032 28,515,314 34,950,000 63,465,314 13,930,838,506 4.50% 208,962,578 348,270,963 180,447,264 284,805,649 2033 24,683,322 30,315,000 54,998,322 14,557,726,239 4.50% 218,365,894 363,943,156 193,682,572 308,944,834 2034 20,723,662 25,360,000 46,083,662 15,212,823,920 4.50% 228,192,359 380,320,598 207,468,697 334,236,936 2035 16,626,052 20,075,000 36,701,052 15,897,400,996 4.50% 238,461,015 397,435,025 221,834,963 360,733,973 2036 12,652,810 14,440,000 27,092,810 16,612,784,041 4.50% 249,191,761 415,319,601 236,538,951 388,226,791 2037 8,926,072 8,440,000 17,366,072 17,360,359,323 4.50% 260,405,390 434,008,983 251,479,318 416,642,911 2038 5,070,838 4,335,000 9,405,838 18,141,575,492 4.50% 272,123,632 453,539,387 267,052,794 444,133,549 2039 1,640,000 - 1,640,000 18,957,946,389 4.50% 284,369,196 473,948,660 282,729,196 472,308,660 2040 - - - 19,811,053,977 4.50% 297,165,810 495,276,349 297,165,810 495,276,349 2041 - - - 20,702,551,406 4.50% 310,538,271 517,563,785 310,538,271 517,563,785 2042 - - - 21,634,166,219 4.50% 324,512,493 540,854,155 324,512,493 540,854,155 2043 - - - 22,607,703,699 4.50% 339,115,555 565,192,592 339,115,555 565,192,592 Voted debt cannot exceed the aggregate of: 2.5% for general purposes, 2.5% for parks and open spaces, & economic development, and 2.5% for utility purposes 17 INFORMATIONAL MEMO Page 12 iii. Annual Debt Service 30 Year Debt Issuance Interest Rate 5.00% Payments Per Year 1 Term (Years) 30 Total Bond Annual Debt Service Minimum General Fund Obligation 80,000,000 $5,204,115 $2,602,057.40 75,000,000 $4,878,858 $2,439,428.82 70,000,000 $4,553,600 $2,276,800.23 65,000,000 $4,228,343 $2,114,171.64 60,000,000 $3,903,086 $1,951,543.05 Like most capital projects, the Public Works Phase 2 can be paid with a variety of revenue options, grants, and capital appropriations from other governmental entities. The City will have to issue a bond to pay for the overall construction costs. One way of looking at the construction costs is to look at how the City would pay the annual debt service for the project. Page 51 of the City’s 2023/2024 Adopted Budget outlines the City’s required debt service through 2028. As shown on the page, the City assumed the general fund would support $1,951,543 in annual debt service for the Public Works Shops, Phase 2. Since the general fund is assumed to support 50 percent of the construction costs, with the utilities assuming the other half. This would support a total bond of $60 million per year. In 2023 the total debt payments for all debt for the City is approximately $5.01 million. Page 51 of the City’s 2023/2024 adopted budget is below. 40 Year Debt Issuance Interest Rate 5.00% Payments Per Year 1 Term (Years) 40 Total Bond Annual Debt Service Minimum General Fund Obligation 80,000,000 $4,662,253 $2,331,126.45 75,000,000 $4,370,862 $2,185,431.04 70,000,000 $4,079,471 $2,039,735.64 65,000,000 $3,788,080 $1,894,040.24 60,000,000 $3,496,690 $1,748,344.83 18 INFORMATIONAL MEMO Page 13 Based upon updated construction costs, for planning purposes the City is assuming construction costs, including bond costs, of $79.44 million. The design and pre-construction work will be paid with cash on hand and not included in the bond. Total Maximum Potential Bond Total (Hard and Soft) Cost: 77,890,588 Cost of Debt Issuance:1,557,812 Total Bond: 79,448,400 General Fund and Utility Fund Allocations, Adjusted General Fund Allocation 39,724,200 Less Grants and One Time: - Less Land Sales: - Alternative Scopes: - Total: 39,724,200 General Fund Debt Service 2,584,116 Utility Fund Allocation 39,724,200 Less Grants Alternative Scopes: Less One Time Monies Total, Utilities: 39,724,200 Utilty Debt Service 2,584,116 19 INFORMATIONAL MEMO Page 14 The total potential bond obligations would be split 50/50 between the general fund and utilities. The terms are 30 years, with 5% percent interest rate. The obligations above assume no land sales, no one time cost adjustments, and no grants/one time funding opportunities. It’s essentially the max debt service model. However, the debt service obligations are lowered if the City credits land sales and other one-time funds to the project. The adjusted model (discussion purposes only) above assumes $2 million in grants/one-time funds, $5 million in land sales, and reducing the scope by $1 million, lessening the general fund total debt service obligation to just over $2 million per year. The use of one-time funds would significantly reduce the annual debt service the general fund would have to service per year. iv. Interest Rate Variable General Fund and Utility Fund Allocations, Adjusted General Fund Allocation 39,724,200 Less Grants and One Time: - Less Land Sales: 10,000,000 Alternative Scopes: 500,000 Total: 29,224,200 General Fund Debt Service 1,901,076 Utility Fund Allocation 39,724,200 Less Grants Alternative Scopes: Less One Time Monies Total, Utilities: 39,724,200 Utilty Debt Service 2,584,116 General Fund Debt Service General Fund Bond Allocation: 39,750,000 34,750,000 29,750,000 24,750,000 Maximum Payment Required: $2,585,795 $2,260,537 $1,935,280 $1,610,023 Debt Service in 2023/2024 Budget: 1,951,543 1,951,543 1,951,543 1,951,543 Max. Additional Gen. Funds Needed: 634,251 308,994 (16,263) (341,520) 30 Year Payments, Based On Interest Rate Total Bond 4.50% 5.00% 5.50% 6.50% 7.00% 80,000,000 $4,911,323 $5,204,115 $5,504,431 $6,126,195 $6,446,912 75,000,000 $4,604,366 $4,878,858 $5,160,404 $5,743,308 $6,043,980 70,000,000 $4,297,408 $4,297,408 $4,297,408 $4,297,408 $4,297,408 65,000,000 $3,990,450 $3,990,450 $3,990,450 $3,990,450 $3,990,450 60,000,000 $3,683,493 $3,683,493 $3,683,493 $3,683,493 $3,683,493 Interest Rate 40 Year Payments, Based On Interest Rate Total Bond 4.50% 5.00% 5.50% 6.50% 7.00% 80,000,000 $4,347,452 $4,662,253 $4,985,627 $5,655,498 $6,000,731 75,000,000 $4,075,736 $4,370,862 $4,674,026 $5,302,029 $5,625,685 70,000,000 $3,804,020 $3,804,020 $3,804,020 $3,804,020 $3,804,020 65,000,000 $3,532,305 $3,532,305 $3,532,305 $3,532,305 $3,532,305 60,000,000 $3,260,589 $3,260,589 $3,260,589 $3,260,589 $3,260,589 Interest Rate 20 INFORMATIONAL MEMO Page 15 iv. Hypothetical Utility Annual Rent Payments Assuming a bond of $79,448,000 per year with fixed payments. Hypothetical total base rent is $3,000,000 per year, with the utilities responsible for half of the rent cost. As is typical with all commercial leases, the base rent increases on an agreed upon amount. This amount would be set by an industry standard. The rent amount would be determined by obtaining a broker’s opinion value. Staff is working on the cost share allocation with the City’s utility funds (water, sewer, and stormwater) to ensure that the utilities are paying their fair share for the improvements. This will most likely include the utilities paying rent to the general fund indefinitely for the site. In future years the rent would likely be higher than our debt service to reflect a change in market rent. IV. Other The following outlines specific questions that have been asked in the various City Council and committee meetings. a. Construction Delay Costs Construction is currently anticipated to begin on May 1, 2025, shortly after the existing tenant’s lease expires. Current estimates are that for every month in delay the project’s construction costs would increase approximately $300,000 per month. b. Phasing of the Project A question came up at the February 27 Finance and Governance Committee meeting regarding a previously discussed phase 3 of the project. This comment seemed to be related to cost management and reducing the scope of the current project. 2024 2025 2026 2027 2028 Projected General Fund Revenues: 74,042,407$ 66,813,952$ 68,258,314$ 69,971,661$ 71,550,732$ Adopted Projected Debt (includes $1.95 M for PW Phase 2): 4,206,345$ 5,643,933$ 5,735,890$ 5,739,099$ 5,704,835$ % of Debt Payments to General Fund Revenue: 5.68% 8.45% 8.40% 8.20% 7.97% Max General Fund Additional Debt Needed:-$ 632,573$ 632,573$ 632,573$ 632,573$ Total Potential Debt: 4,206,345$ 6,276,506$ 6,368,463$ 6,371,672$ 6,337,408$ % Debt Payments to General Fund Revenue: 5.68% 9.39% 9.33% 9.11% 8.86% Six Year Financial General Fund Debt Support Hypothetical Market Rent for Property:5,000,000$ Utilities Rent (50% of estimated rent): 2,500,000$ Annual Cost Adjustment:5% Year Total Debt Service Utility Rent General Fund Obligation 1 5,168,232$ 2,500,000$ 2,668,232$ 2 5,168,232$ 2,625,000$ 2,543,232$ 3 5,168,232$ 2,756,250$ 2,411,982$ 4 5,168,232$ 2,894,063$ 2,274,170$ 5 5,168,232$ 3,038,766$ 2,129,467$ 6 5,168,232$ 3,190,704$ 1,977,529$ 7 5,168,232$ 3,350,239$ 1,817,993$ 8 5,168,232$ 3,517,751$ 1,650,481$ 9 5,168,232$ 3,693,639$ 1,474,594$ 10 5,168,232$ 3,878,321$ 1,289,912$ 21 INFORMATIONAL MEMO Page 16 In 2019 the City Council authorized SHKS Architects to do site design planning for the public works shop site. A copy of the conceptual site design planning, including a three-phased total project is shown in the attachment provided. That proposed phasing would have resulted in the City demolishing and moving out of the Fleet and Facilities building. However, the City Council directed staff not to pursue the three-phase plan and to instead plan around the Fleet and Facilities building remaining in its current location. The City Council also provided additional funds to improve the seismic status of the building to be one that can be useable after an earthquake. Staff has taken this direction from Council and the project does not currently include a third phase and assumes the Fleet and Facility building will remain for the useful life of the building. Phasing of Phase 2 will not reduce the project cost or save the City money. In fact, the project team believes phasing would add more overall costs to the project: 1. Most of the significant cost items, such as the stormwater system and administration building cannot be phased. 2. Construction costs will likely continue to increase. In fact, going back to 2009, construction costs have always trended upwards, some years more steeply than others. At best the rate of increase may not be as aggressive, but the cost will continue to move upwards. Staff has discussed likely construction cost trends with developers who also believe that costs will continue to rise. 3. The City may be able to take advantage of favorable bonding costs in the next few years. If the work was spread out the City the City may have to issue different bonds and the terms may not be as favorable on the second issuance. 4. There are inefficiencies for the contractors since they would have to mobilize and secure temporary facilities for a phase project. These inefficiencies would be passed on to the City has additional costs for the project. 5. The design costs would be increased since the City would have to prepare two additional sets of contract documents. 22 INFORMATIONAL MEMO Page 17 c. List of City Facilities (Due to space, this was moved as an attachment). d. Monetization of Surplus City Properties (Due to space, this was moved as an attachment). Attachment “B” is an updated list of properties that the City could monetize. If the vote to the RFA is successful, the City would not have to budget additional fire capital equipment into the D-20 model. This frees up land sales and leases to support other projects, such as the Public Works Operations Campus Phase 2. There is just under $18 million in potential land sales available to the city over the next five years. e. Intergenerational (Teen/Senior) Center Update The City Council did not allocate any funding for the planning of the Intergenerational Center in 2023 or 2024. The CIP does show funds being allocated in 2025 and 2026 for additional planning efforts. f. Minkler Shops and Levee Issues The Minkler Facility is classified as a critical facility because of its role in assisting with emergency response and because it stores hazardous materials, that if flooded would be problematic. Per Tukwila Municipal Code 16.52.120, all new critical facilities shall be located outside of the limits of the 100-year flood event. If no feasible alternative exists, then the facility shall be elevated 3 feet above the base flood elevation (100-year flood event) or elevated to the 500-year flood elevation, whichever is higher. The City’s Floodplain Ordinance is based on the state’s model floodplain ordinance. Additionally, the Minkler Shops are located immediately behind the decertified Tukwila 205 levee, which has been shown to not meet federally established criteria (44 CFR 65.10) to provide reasonable assurance that protection from the base flood (aka 100-year flood) exists. The City, along with the King County Flood Control District and the US Army Corps of Engineers, are working on a long term, multi-phase process to address levee deficiencies. Minkler Shops has also been identified by WRIA-9 as an ideal location along the Green River to complete a salmon restoration project. A restoration project would likely be included in an overall levee setback project in the area. King County Flood District has expressed an interest in purchasing the Minkler Shops property. g. Can spoils be located somewhere else doing design and construction phase? The City’s spoils storage are currently scattered at various city owned site. Longacres and George Long will likely not be available to the City in the next few years as the City moves to sale the properties 1. Hydro-Excavated Spoils (clean muddy wet dirt) stored while it dries under the Grady Way Bridge accessed via Long Acres Property. 2. Dry Excavated Spoils (clean dry dirt) stored Long Acres Property. 3. Vactor Catch Basin Waste (grit, oil, sand) transported directly to King County Vactor Waste Facility in Renton. We don’t have a site to handle this type of material (Decant Facility). Not efficient use of time and limited to restricted delivery hours. 23 INFORMATIONAL MEMO Page 18 4. Street Sweeping Waste (leaves, litter, grit) stored at George Long before hauled to Waste Management Rail Transfer site in South Seattle. Stockpile is transported once large enough to send multiple dump trucks, multiple times on a scheduled delivery day. 5. Wood Chipping Waste (wood chips, ground leaves and vegetation) stored at George Long before used in parks and ROW as landscape mulch. h. Cost of Operations Campus to Date To date, the City has spent approximately $36 million on the Public Works Operations Campus. A significant amount of the funds used were to acquire the three parcels and to assist with business relocation for two of the businesses on the site. i. Impacts of Terminating the Project Terminating the project would result in the City not fulfilling its commitment regarding investing in new, safe buildings for the City’s public safety personnel. The City would have staff located at the Minkler Shops, which are too small for the City’s operations. Terminating the project would also result in general fund needing to pay back the utilities for work done to date on the project. The City has been implementing a 50/50 split between the general fund and utilities. General fund activities from George Long have moved to the Public Works Operations Campus. However, the utilities are located at Minkler Shop. If the utilities do not utilize the new campus the City cannot justify the 50/50 split. NEXT STEP Staff is requesting authorization to move forward with the design and pre-construction work. Staff is not requesting authorization to move forward with construction or for the issuance of debt for the construction of the project. The following outlines the contracts that would need to be executed. The design and pre- construction work will occur in 2023, 2024, and 2025. Construction could begin in May of 2025. Staff would like to have the owner’s contingency floating. Meaning that the City would allocate to a specific contract if and when needed. It’s possible that other contracts would be needed, and the City could use the owner’s contingency for this work. Staff is requesting permission to add funds to contracts or to secure additional contract, if needed, provided the total project allocation does not exceed $5,974,412, with the need to get the contract modified by the City Council. Firm Services Design Phase Costs Construction Phase Costs Miller Hayashi Architect 3,928,715.00$ 1,487,110.00$ GeoEngineers Geotech 32,842.00$ 48,000.00$ NOVO HAZMAT 19,900.00$ Part of the 19,900 Wetherholt Building Envelope 12,950.00$ 56,850.00$ SOJ Project Management 750,734.00$ Not provided Ogden Murphy Legal 50,000.00$ Not provided GCCM Preconstruction 400,000.00$ Not provided Subtotal:5,195,141.00$ 15% contingency:779,271.15$ Total Design Phase Costs:5,974,412.15$ (Excludes: Permit Fees, Bond Costs) Tukwila Maintenance & Engineering Building - Design Phase Budget DRAFT - 4/10/2023 24 INFORMATIONAL MEMO Page 19 Similar to the public safety plan, staff would also like to implement a monthly report to the City Council regarding the budget and expenditures associated with the design and pre-construction phase. This would be a report include in a packet to the City Council. Additionally, the project team will provide formal milestone check ins to the City Council in October, 2023; June, 2024, and March, 2025. Each one of these milestones would serve as potential offramp for the City Council to terminate the project. FINANCIAL IMPACT RECOMMENDATION Staff is requesting Council authorization for the Mayor to sign all necessary contracts for design and pre-construction work not to exceed $5,974,412 including contingencies. This would include specific updates and opportunities for off-ramps during this process. Staff would like to present this final report to the Committee of the Whole on May 22, 2023. The draft contracts for execution would be included in the packet for that meeting. Final City Council action could occur on June 5, 2023. ATTACHMENTS  SHKS Architects Phasing Outline  Attachment “A,” Current Conditions and Overview of Key City Facilities  Attachment “B,” Surplus Property Sale Opportunities  Attachment “C” Debt Service  Attachment “D” Salmon Habitat Project, Minkler Shops, WRIA-9 25 26 2 7 2 8 Attachment “A”, Current Conditions and Overview of Key City Facilities DRAFT, Updated May 1, 2023 Campus Building Name Year Built Building Sq. ft. Land Sq. ft. Primary Use Secondary/Backup Use Seismic Risk Flood Risk Tenant Improvement (Last Ten Years) Can be surplus? City Hall City Hall 1979 25,159 117,774 Administration and City Council N/A Some risks were identified in the 2008 study, but generally the building was satisfactory. Low $595,806 N/A 6300 Building 1980 33,230 67,417 Administration (DCD, PW, TIS, City Council meetings, and Administrative Services.) Sound Cities Association (tenant) 2008 study identified significant issue with building in the event of an earthquake, including a risk to inhabitants. Low $526,831 Possibly, if City Hall campus operations were consolidated into other city facilities. Major Parks Facilities Tukwila Community Center 557,568 35,260 Parks and Recreation offices; teen and senior activities; Emergency shelter. Was not designed as an essential facility, Low $859,925 N/A 2 9 Attachment “A”, Current Conditions and Overview of Key City Facilities and meeting space. significant seismic issues. Foster Golf Club House 2004 14,656 N/A Club house and restaurant for Foster Golf Links N/A Was built to current standards in 2004. Low Still researching. N/A Parks Maintenance Facility 2,900 N/A Parks maintenance shops and offices. N/A Generally acceptable. Medium Still researching. N/A Public Safety Buildings Justice Center 2021 123,859 Police, Court, and Emergency Operation’s Center Community meeting space. Built to meet current seismic standards. Low $8,755 N/A Fleet and Facilities 2022 23,397 127,125 Public Works Operations, Fleet and Facilities N/A Building was retrofitted to be operational following a seismic event. Low N/A N/A Minkler Shops 1972- 1975 7,480 484,823 Public Works Streets and Utilities. N/A 2008 report identified seismic deficiencies that would render it suspectable to unacceptable levels of damage. Soil liquefaction High $45,537 Yes, was part of the D-20 financing model. 3 0 Attachment “A”, Current Conditions and Overview of Key City Facilities also a concern. New Fire Station 51 2021 11,240 246,878 Fire Station Community space. Built to current seismic standards. Low New Construction N/A New Fire Station 52 2021 14,650 108,904 Fire Station Community space, backup emergency operation’s center. Built to current seismic standards. Low New Construction N/A Fire Station 53 1995 7,392 38,860 Fire Station N/A Generally acceptable. Site damage from a seismic event could hinder access. Low $116,332 Fire Station 54 1961 5,398 111,064 Fire Station N/A Does not meet immediate occupancy standards following a seismic event. Low $35,892 Will be leased to RFA. The deed is vested with old Fire District. Staff is working to address this issue. Other Buildings Old Fire Station 51 1973 16,115 81,000 Currently being used for police vehicle evidence storage. None. 2008 study recommended replacing the entire structure. Building is not Medium, protected by levee. $124,815 Yes, was part of the D-20 financing model. 3 1 Attachment “A”, Current Conditions and Overview of Key City Facilities currently being used for occupancy by City staff. Old Fire Station 52 3,330 1971 50,530 Vacant None N/A Low N/A No, deed restrictions limits the City’s ability to sell or lease. Old Fire Station 53 (Allentown) 1930 4,608 21,042 Storage None N/A Low N/A Yes, was part of the D-20 financing model. George Long 1965 18,168 166,439 Vacant, some storage None N/A, not being used for occupancy. Medium $60,447 Yes, was part of the D-20 financing model. 3 2 Attachment “B”, Surplus Property Sale Opportunities Updated, March 15, 2023 Updated, March 21, 2023 Council Direction Property Name Status Estimated Value Contract or Final Sales Price Notes Budget Allocation Property Sold or Under Contract HealthPoint Under contract with HealthPoint N/A, under contract. $3,850,000 HealthPoint has already paid the City $2,500,000. The final payment of $1,350,000 is due by June 30, 2023. In Fund 302 – Urban Renewal: $1.85 million to pay off line of credit for Urban Renewal and TIB redevelopment. $1 million for ERP system, $1 million unallocated Travelers Choice Sold, closed October 26, 2021 N/A, sold. $665,000 Part of mitigation measures for impacts with the Justice Center siting. $400,000 was budgeted to urban renewal/TIB redevelopment and $265,000 to the Public Safety Plan (Fund 305) Council Authorized Purchase and Sale Agreement George Long In progress. $3,225,000 N/A Council authorized the Mayor to enter into purchase and sale agreement with King County. Still working to finalize Council Previously Briefed on Likely Surplus Old Allentown Fire Station Not yet started. $200,000 N/A 3 3 Attachment “B”, Surplus Property Sale Opportunities Updated, March 15, 2023 Longacres Parcel Begun preliminary discussions about bringing property to market. $2,000,000 N/A Previously allocated to Public Safety Plan; should annexation to the PSRFA occur these funds would not be needed for the Public Safety Plan. Not budgeted since Council has not given direction. Old Fire Station 51 On hold. $2,300,00 N/A Police is currently using the building for vehicle evidence storage. Previously allocated to Public Safety Plan; should annexation to the PSRFA occur these funds would not be needed for the Public Safety Plan. Not budgeted since Council has not given direction. Newporter Not yet started. $1,000,000 N/A Minkler Shops Have had preliminary discussions with King County Flood District $4,200,000 N/A Cannot be sold until decision is made regarding Public Works Phase 2. Additional Properties, No Council Direction Yet Old Fire Station 52 N/A N/A N/A Deed restriction on property limits the City’s option with the property; required to stay in community use. Building will likely need to be demolished and the City will look at city other opportunities N/A 3 4 Attachment “B”, Surplus Property Sale Opportunities Updated, March 15, 2023 with the property to expand Hazelnut park. 6300 Building Not yet started. $4,000,000 N/A Council has not previously been briefed on possible surplus of 6300 building. Until staff can be consolidated into other buildings, the City cannot surplus. Staff has been looking for tenants to lease vacant office space. Funds have not been allocated, decision would need to be made regarding consolidation of city staff into City Hall or other City facility. Star Nursery Site On hold $880,000 N/A This property was purchased for the relocation of Fire Station 54, but construction of the station was deferred. The site was also identified as a possible site for a future teen/senior center. Funds have not been allocated. 3 5 3 6 Debt Service 2023-2028. This chart displays the general fund contribution to debt service for existing debt, planned debt and proposed debt over the 6-year projection period. The totals in the chart represent debt service payments; the totals do not take into consideration other revenue sources that offset the general fund obligation. TOTAL 2023 2024 2025 2026 2027 2028 2023-2028 LTGO 2015 392,475 389,375 391,125 387,575 391,050 392,050 2,343,650 Interurban 227,636 225,838 226,853 224,794 226,809 227,389 164,840 163,538 164,273 162,782 164,241 164,661 LTGO 2017 558,400 557,750 556,800 555,550 554,000 557,150 3,339,650 LTGO 2018 1,532,700 1,534,450 1,534,200 1,531,950 1,532,700 1,531,200 9,197,200 (766,350) (767,225) (767,100) (765,975) (766,350) (765,600) (4,598,600) LTGO 2019 1,691,050 1,689,550 1,690,800 1,689,550 1,690,800 1,689,300 10,141,050 (372,031) (371,701) (371,976) (371,701) (371,976) (371,646) (2,231,031) SCORE 2019 376,876 376,914 377,126 376,861 377,054 376,693 2,261,524 Refunding (376,876) (376,914) (377,126) (376,861) (377,054) (376,693) (2,261,524) LTGO 2020R 513,029 516,579 - - - - 1,029,608 Refunding Southcenter Pkwy Extension 376,307 378,911 - - - - Emergency Management 136,722 137,668 - - - - LTGO 2021A 314,231 314,241 314,172 314,226 314,198 314,188 1,885,256 (157,116) (157,121) (157,086) (157,113) (157,099) (157,094) (942,628) LTGO 2021B 257,741 257,475 258,381 257,321 257,146 256,826 1,544,890 LTGO 2021C 542,569 - - - - - 542,569 Existing debt 5,019,728$ 4,479,953$ 3,449,316$ 3,441,383$ 3,444,469$ 3,446,374$ 22,251,614$ PROPOSED DEBT: LTGO 2020 PW Shops-General Fund Portion 30,000,000 - - 1,951,543 1,951,543 1,951,543 1,951,543 7,806,172 -$ -$ 1,951,543$ 1,951,543$ 1,951,543$ 1,951,543$ 7,806,172$ TOTAL Estimate / Projections 5,019,728$ 4,479,953$ 5,400,859$ 5,392,926$ 5,396,012$ 5,397,917$ 30,057,786$ Interurban/Boeing Access Rd Brdg Boeing Access Road Bridge PW Shops 50% paid by utility funds 42nd and 53rd Sidewalks PSP (Justice Center, Fire) & PW Shops 22% paid by utility funds South County Correctional Entity, SCORE Jail facility Estimated contribution by SCORE Southcenter Parkway Extension, emergency management PW Shops 50% paid by utility funds Urban Renewal Arterial Streets Use of Debt Proceeds BUDGET PROJECTIONS EXISTING DEBT: 51 2023 - 2024 Biennial Budget City of Tukwila, Washington 51 38 RM 14 LG-35 G reen River I n t e r u r b a n T r a i l - T u k w i l a G r e e n R i v e r T r a i l - T u k w i l a InterurbanTrail Site - Tukwila InterurbanTrail Site - Tukwila Minkler Blvd An d o v e r P a r k E 181TUKWILA RENTON K ING C OUNT Y Seattle WRIA 9 Incorporated Area N Vashon/ Maury Islands Miles 0 5 10 LOCATION MAP Seattle PROJECT AREA MAP Public Lands N0 200 400 ft.Park Incorp. Area Boundary Floodplain Restoration Riparian Acquisition $ Planning/ Design Side channel Scoping/ Reconnaissance Primary strategy Protect, restore and enhance floodplain connectivity. Benefits: • Flood risk reduction • Increased habitat connectivity • Increased rearing habitat Contribution to goals metrics: • LG - O-channel habitat PROJECT DESCRIPTION: Relocate the City of Tukwila's stormwater pond; clean and connect the existing pond to the river, setback the levee to create up to 7 acres of o channel habitat. Tier 1 Project: LG-35 P-17 Pond Connection Reconnection PROJECT FACTS Subwatershed: Lower Green (LG) River mile: RM 13.7- 13.9/ left bank Banksidejurisdiction: City of Tukwila Project sponsor: City of Tukwila Budget: $37,000,000 PROJECT TYPE: Project Area Map: Ortho2019KCNAT aerial photo Site photo: Google Earth KCIT-DCE file: 2011_10202L LPRE GIS file Q:\20009\WRIA9_ProjectMaps.mxd KLINKAT KEY HABITAT: P-17Pond PAGE 128 Green-Duwamish and Central Puget Sound Watershed Salmon Habitat 2021 Update 39 40 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM 1 TO: Finance & Governance Committee FROM: Tony Cullerton, Deputy Finance Director CC: Mayor Ekberg DATE: May 8, 2023 SUBJECT: March 2023 General Fund Departmental Budget-to-Actuals Report Summary The purpose of the March 2023 General Fund Financial Report is to summarize for the City Council the general state of departmental expenditures and to highlight significant items. The following provides a high-level summary of the departmental financial performance. The March 2023 report is based on financial data available as of April 28, 2023, for the period ending March 31, 2023. Expenditures Allocated Budget As of the end of March, all departments, with the exception of Fire, reported activity that is within their allocated budget. The overage in Fire is $119,294. $88,267 is attributed to an increase in the WCIA insurance premium over last year. Additionally, invoices for the Fire Department that total approximately $7,000 for supplies were purchased at the end of 2022 and have been received and paid in 2023. The WCIA insurance premium increase and last-minute year-end 2022 supply purchases are the primary significant drivers of the overage in Fire’s Allocated Budget. General Fund departmental expenditures totaled $17.2 million through March, which is $1.99 million below the allocated budget of $19.1 million. Department 20, which transfers to other funds, reported $1.5 million in expenditures. This number reflects transactions for debt payments and interfund activity. Budget to Actual (% Expended) When comparing YTD spending to the percent of year completed (25%), three departments finished the month higher than 25%. Finance reported % expended of 26.8%. The expenditures that tipped finance over the 25% mark are attributed to Professional Services. For the same period last year, there were no audit costs incurred during January – March of 2022. The $14,551 reported in 2023 are for the 2022 Accountability audit that continued into 2023. Finance did request that the State Auditor’s Office (SAO) complete the 2022 audit fieldwork in FY 2022, for 41 INFORMATIONAL MEMO Page 2 2 budgetary purposes. However, at SAO’s request the City agreed to accommodate the auditor’s schedule of completing the Financial/Federal audit and return at a later date to complete the Accountability fieldwork. The other major increase pertained to an increase in the WCIA Liability Insurance premium. While Finance is reporting YTD expenditures of 26.8% at 25% of the year, these expenditures were previously identified and budgeted, as is supported by Finance currently reporting total expenditures under Allocated Budget. Fire ended the quarter at 27%. The increase is primarily with Contracted Svs. The increase is the Puget Sound Regional Fire Authority agreement. In prior years, these costs were reported in the Salaries line-item. Additionally, as stated above, we have received late year-end 2022 invoices paid in 2023. PW Dept/Street Maint. reported quarterly expenditures 35% at 25% of the year. The YTD overage is attributed to the WCIA Insurance invoice that was paid in January 2023. The other significant increase is the collective rise in utility costs over the same period last year, attributed to the new Facilities Maintenance building that opened in June of 2022. 2022 2023 $ Change % Change Professional Svs Audit 0 14,551 14,551 N/A Insurance 384,387 450,534 66,147 17.2% Total 384,387 465,085 80,698 21.0% Category 2022 2023 $ % Insurance-Property Preimum 346,858 438,917 92,059 26.5% Electric 52,031 86,992 34,961 67.2% Natural Gas 11,290 16,656 5,366 47.5% Water/Sewer 11,298 16,155 4,857 43.0% Surface Water 39,861 50,280 10,419 26.1% Total 461,338 609,000 147,662 32.0% 42 INFORMATIONAL MEMO Page 3 3 Departmental Variances Year to Date Department Expenditures Through March 2023: 2023 Compared to 2022 Most of the General Fund departments reported increases over the same period compared to the prior year. This is expected as a result of increases in salaries due to contractual obligations and the general rise in the cost of ongoing expenditures. However, several departments reported increases greater than 5% and $50,000 over the same period last year. This section of the report provides additional information on the increase over the prior year. Administrative Services reported an increase of $131,062 (13.3%) over the same period last year. The cause of the increase is within Salaries and Technology Services. Salaries increased by $66,487 (12.5%). The increase is a result of a reclassification for an employee and a payout pertaining to the retirement of a long-term employee. The rise in Technology Services is due to an increase in Online Services – Subscriptions. Examples of the largest Online Services- Subscriptions increases are itemized below. Allocated Budget % 2023 2023 2021 2022 2023 vs Actual Expended $ Change % Change DEPARTMENT Annual Allocated OVER/(UNDER) City Council 384,889 89,222 78,406 83,193 96,072 6,850 25.0% 12,879 15.5% Mayor's Office 2,502,666 659,286 437,650 482,450 498,594 (160,692) 19.9% 16,144 3.3% Administrative Services 5,676,491 1,498,029 974,812 988,668 1,119,730 (378,299) 19.7% 131,062 13.3% Finance Department 3,868,642 1,299,904 864,853 1,013,642 1,036,494 (263,410) 26.8% 22,852 2.3% Rec Dept / Parks Maint 5,109,490 1,308,938 1,041,420 1,090,832 1,195,222 (113,716) 23.4% 104,390 9.6% Community Dev 4,672,314 1,166,179 894,467 1,075,552 1,021,855 (144,324) 21.9% (53,697) -5.0% Municipal Court 1,741,340 435,335 284,893 371,603 400,959 (34,376) 23.0% 29,357 7.9% Police Department 22,746,448 5,872,927 4,453,390 4,386,444 5,192,823 (680,104) 22.8% 806,379 18.4% Fire Department 14,790,120 3,870,070 3,416,507 3,590,156 3,989,364 119,294 27.0% 399,208 11.1% PW Dept / Street Maint 7,574,988 2,992,345 2,270,184 2,504,742 2,647,568 (344,777) 35.0% 142,825 5.7% Subtotal 69,067,388 19,192,235 14,716,582 15,587,281 17,198,681 (1,993,554) 24.9% 1,611,400 10.3% Non Departmental 6,688,881 245,701 1,365,690 1,342,690 1,508,158 1,262,457 22.5% 165,468 0.0% Total Expenditures 75,756,269 19,437,936 16,082,272 16,929,971 18,706,839 (731,097) 24.7% 1,776,868 10.5% % of Year 25.0% 2020/20212022/2023 BUDGET ACTUAL Desc 2022 2023 $ Salaries 530,252 596,738 66,487 Technology Svs 60,901 151,595 90,694 Total 57,350 143,707 157,181 43 INFORMATIONAL MEMO Page 4 4 Recreation / Parks Maintenance reported an increase of $104,390 (9.6%) over the same period last year. The largest portions of the increase are due to increased salaries related to the restoration of services and an increase in Security/Safety Svs. expenditures over the prior year. Police reported an increase over the prior period of $806,379 (18.4%). While this amount is significant, the cause of the increase is consistent with what has been reported in previous months. There has been a rise in Salaries, OT, and Professional Services. Fire has previously been addressed. The increase over the prior year is $399,208. This is the payment to the PSRFA. It is important to note that in the prior year these expenditures were reflected in Fire Salaries. Online Services-Subscriptions $ Email Filter 9,675 ESRI (GIS) Services 30,319 Online Resources Svs 20,258 Network Security Monitoring 39,993 Digital Signature Platform 19,577 Total 119,822 Div Desc 2022 2023 $ Diff Dscription P&R Extra Labor 37,495 63,202 25,707 Increase in the restoration of servcies P&R Supplies (7,434) 12,275 19,709 Recoding from P&R to Arts Commission of wellness gift cards P&R Professional Svs - Contracted Svs 2,019 21,314 19,295 TCC Youth Basketball Clinics ($16k) Parks Maint Salaries 193,260 208,236 14,976 Salaries Pks Maint Professional Svs 18,373 28,057 9,684 Security Parks Maint Repair Maintenacne Supplies 4,574 18,399 13,825 Overall increase in supplies Total 250,309 353,506 103,196 Description 2022 2023 $ % Salaries 2,153,191 2,540,381 387,190 18.0% OT 255,782 361,329 105,547 41.3% Professional Svs Contracted Svs 3,708 10,748 7,040 189.9% Dispatch 196,468 230,807 34,339 17.5% Jail Svs 159,854 336,338 176,484 110.4% Insurance 278,737 324,930 46,193 16.6% Total 3,047,740 3,804,533 756,793 24.8% 44 INFORMATIONAL MEMO Page 5 5 Public Works / Street Maintenance reported an increase of $142,825 (5.7%). 64% of the increase is attributed to a $92,059 increase in Insurance–Property premiums. The other significant increase is the collective rise in utility costs over the same period last year, attributed to the new Facilities Maintenance building that opened in June of 2022. This concludes the recap of notable variances within departments between 2022 and 2023. While overall General Fund departmental costs increased by 10.3% over the same period last year, the increase in expenditure was identified ahead of time and were budgeted for. As a reminder, all General Fund departments ended the month of March within their Allocated Budget, with the exception of Fire. The graph below shows the Annual Budget, Actual Expenditures, and Allocated Budget amounts for the General Fund departments. Category 2022 2023 $ % Insurance-Property Preimum 346,858 438,917 92,059 26.5% Electric 52,031 86,992 34,961 67.2% Natural Gas 11,290 16,656 5,366 47.5% Water/Sewer 11,298 16,155 4,857 43.0% Surface Water 39,861 50,280 10,419 26.1% Total 461,338 609,000 147,662 32.0% 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 City Council Mayor's Office Administrative Services Finance Department Rec Department / Park Maint Community Dev (DCD) Municipal Court Police Department Fire Department Public Works Dept / Street Maint ThousandsActual Expenditures Allocated Budget 45 INFORMATIONAL MEMO Page 6 6 General Fund by Category Per ordinance, the City adopts a biennial budget by fund. This is the required level of reporting for external authoritative sources of oversight such as of the Washington State Auditor’s office. This level of reporting is also utilized for the purposes of debt issuance and by other stakeholders. For managerial reporting and internal use, the city reports activity at the department level. This provides more details and additional information used by decision makers within the city and those charged with governess. In an effort to provide an enhanced level of reporting, additional information is being provided for activity at the transaction level that reflect an increase of more than 5% over the prior year AND $50,000, that are part of a Category that is reporting total activity above the % of Year calculation. The end of March represents completion of 25% of the year. Total Services is the only Category that reported total activity higher than 25%. Within Total Services the event that tipped Professional Services was the Fire contract payment. As previously stated, in the prior year, these costs were reported in the Salaries line. Professional Development includes Memberships and also reflects the return to business travel and training. The increase in Technology Services has been previously addressed above in the Administrative Services details. The majority of this report is dedicated to identifying, understanding, and explaining spikes in expenditures compared to the same period last year. However, at the end of the first quarter it was noted that there is a significant dip in the Repairs & Maintenance Svs category. The decline is close to a quarter of a million dollars. Specifically, $238,553, representing a decrease of 47.9% over the same period last year. This reduction is attributable to a decrease in Fleet Operations & Maintenance Costs. This is a direct result of the policy change that led to transitioning a portion of the City’s fleet to the new Fleet Leasing model, thus recognizing savings pertaining to the decrease in fleet maintenance costs in the first quarter of 2023. Professional Dev 2022 2023 $ Diff Membership 102,913 130,642 27,729 Registration 11,528 24,121 12,593 Hotel/Lodging 1,737 6,152 4,415 Tuition/Coaching/Trainer 2,180 8,670 6,490 Total 118,358 169,585 51,227 46 INFORMATIONAL MEMO Page 7 7 General Fund City of Tukwila General Fund Expenditures Allocated Budget % 2023 2023 2021 2022 2023 vs Allocated Expended Annual Allocated OVER/(UNDER) $ 2022/2023 % 2022/2023 Salaries 25,787,016 6,446,753 6,957,114 7,354,440 5,768,477 (678,276) 22.4% (1,585,963) (21.6%) Extra Labor 769,106 127,128 4,119 66,623 85,173 (41,955) 11.1% 18,550 27.8% Overtime 755,184 165,652 473,154 623,955 395,104 229,452 52.3% (228,851) (36.7%) Holiday Pay 250,000 7,614 4,766 7,379 1,935 (5,679) 0.8% (5,444) (73.8%) FICA 2,110,086 527,522 432,603 468,297 471,530 (55,992) 22.3% 3,233 0.7% Pension-LEOFF 635,410 140,353 212,918 222,705 128,764 (11,589) 20.3% (93,941) (42.2%) Pension-PERS/PSERS 1,744,919 436,230 408,726 361,482 381,460 (54,770) 21.9% 19,977 5.5% Industrial Insurance 586,183 146,546 250,400 170,432 98,829 (47,717) 16.9% (71,604) (42.0%) Medical & Dental 5,748,432 1,437,108 1,558,562 1,842,989 1,342,590 (94,518) 23.4% (500,399) (27.2%) Unemployment 0 0 0 168 0 0 - (168) (100.0%) Uniform/Clothing 33,290 13,572 910 110 470 (13,102) 1.4% 360 328.2% Total Salaries & Benefits 38,419,627 9,448,478 10,303,272 11,118,580 8,674,331 (774,147) 22.6% (2,444,249) (22.0%) Supplies 678,334 164,005 106,389 34,575 64,113 (99,892) 9.5%$29,538 85.4% Repairs & Maint Supplies 450,010 111,105 32,491 41,810 48,408 (62,697) 10.8% $6,598 15.8% Resale Supplies 2,500 600 0 0 0 (600) - $0 - Small Tools 213,203 53,251 7,561 6,035 4,483 (48,768) 2.1% ($1,553) (25.7%) Technology Supplies 110,798 27,699 10,950 8,853 2,764 (24,935) 2.5% ($6,089) (68.8%) Fleet Supplies 7,000 1,750 544 939 1,004 (746) 14.3% $65 6.9% Total Supplies 1,461,845 358,410 157,934 92,213 120,772 (237,638) 8.3% $28,559 31.0% Professional Services 21,798,537 6,490,027 2,037,196 1,933,542 6,135,854 (354,173) 28.1% $4,202,313 217.3% Communications 440,528 106,999 65,740 68,708 71,665 (35,334) 16.3% $2,957 4.3% Professional Dev 570,359 167,931 187,557 119,222 174,811 6,880 30.6% $55,589 46.6% Advertising 66,300 20,200 998 186 1,750 (18,450) 2.6% $1,565 843.4% Rentals 1,298,059 322,390 97,261 36,349 261,690 (60,700) 20.2% $225,341 619.9% Technology Services 1,031,264 506,698 132,100 271,934 337,237 (169,461) 32.7% $65,303 24.0% Utilities 2,244,354 1,421,719 1,281,418 1,291,759 1,334,595 (87,124) 59.5% $42,836 3.3% Repairs & Maint Svs. 1,286,418 320,974 478,329 498,533 259,980 (60,994) 20.2% ($238,553) (47.9%) Miscellaneous 1,012,899 244,109 (25,223) 106,757 32,275 (211,834) 3.2% ($74,482) (69.8%) Total Services 29,748,719 9,601,047 4,255,376 4,326,989 8,609,856 (991,191) 28.9% 4,282,867 99.0% Capital Outlay-Land 0 0 0 0 0 0 - 0 - Other Improvements 0 0 0 0 0 0 - 0 - Machinery & Equipment 420,000 30,000 0 49,499 0 (30,000) - (49,499) (100.0%) Construction Projects 0 0 0 0 39,423 Total Capital Outlay 420,000 30,000 0 49,499 39,423 (30,000) 9.4%(10,076)(20.4%) Transfers Out 5,706,078 0 1,365,690 1,342,690 1,262,457 (4,443,621) 22.1%(80,233)(6.0%) Total Non Operating Expense 5,706,078 0 1,365,690 1,342,690 1,262,457 (4,443,621) 22.1%(80,233)(6.0%) Total Expenditures 75,756,269 19,437,935 16,082,272 16,929,971 18,706,839 (6,476,597) 24.7% 1,776,868 10.5% Change Year-to Date as of March 31, 2023 BUDGET ACTUAL COMPARISON OF RESULTS 47 48 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Vicky Carlsen, Finance Director CC: Mayor Ekberg DATE: May 2, 2023 SUBJECT: Comprehensive Financial Sustainability Plan ISSUE Staff plans to issue a Request for Proposal to select a consultant or consultants to develop a Comprehensive Financial Sustainability Plan (“Plan”) and Utility Rate Study (“Study”) and welcomes input from the Committee on the scope. BACKGROUND The 2023-204 biennial budget provides $200 thousand for the comprehensive financial sustainability plan. The plan will review the City’s operating and capital improvement program expenditures. The goal is to provide short-term (2-5 years) and long-range (6-10 years) plans for the City that considers current and future programs, projects, and service the City offers. Given the magnitude of this project, it was determined that adding in a utility rate study as part of this Plan would be beneficial to the City and aid in the budgeting process for the City’s utility funds. DISCUSSION The Plan is expected to be a valuable tool that will be utilized when drafting the 2025-2026 biennial budget as well as future budgets. This Plan will provide an understanding of the City’s current financial position and develop tools or levers that can be used to provide the right mix of resources necessary to achieve the operational programs and services along with capital improvements desired by our residential and business communities. The Plan is timed to coincide with the facilities study and business planning process related to the Foster Golf Course so that outcomes of these other studies can be incorporated into this Plan. The proposed timeline includes publishing the RFP by May 15, 2023 and anticipated start date for the consultant(s) in July, 2023. The Plan should be finalized and presented to City Council no later than April, 2024. RECOMMENDATION Discussion only. Staff welcomes input from the Committee. ATTACHMENTS Draft Request for Proposal – Comprehensive Financial Sustainability Plan and Utility Rate Study 49 50 City of Tukwila Request for Proposal Comprehensive Financial Sustainability Plan and Utility Rate Study Issue Date: May 15, 2023 Due Date: June 2, 2023 5:00 p.m. PDT 51 REQUEST FOR PROPOSALS Notice is hereby given that proposals will be received by the City of Tukwila, Washington, for: Comprehensive Financial Sustainability Plan and Utility Rate Study Proposals received later than 5:00 p.m., PDT June 2, 2023 A copy of this Request for Proposal (RFP) may be obtained from City’s web site at http://www.Tukwilawa.gov/. Click on the Business tab at the top of the page and then click on the Request for Proposals link found under “Doing Business with the City”. The City of Tukwila reserves the right to reject any and all proposals, and to waive irregularities and informalities in the submittal and evaluation process. This RFP does not obligate the City to pay any costs incurred by respondents in the preparation and submission of a proposal. Furthermore, the RFP does not obligate the City to accept or contract for any expressed or implied services. Further, the City reserves the right to select one consultant for the comprehensive financial sustainability plan and another for the utility rate study, if the City determines it is in the best interest of the City. A consultant response that indicates that any of the requested information in this RFP will only be provided if and when the supplier is selected as the apparently successful supplier is not acceptable, and, at the City’s sole discretion, may disqualify the proposal from consideration. The City of Tukwila assures that no person shall, on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity. The City of Tukwila further assures that every effort will be made to ensure non-discrimination in all of its programs and activities, whether those programs are federally funded or not. In addition to nondiscrimination compliance requirements, the Supplier(s) ultimately awarded a contract shall comply with federal, state, and local laws, statutes, and ordinances relative to the execution of the work. This requirement includes, but is not limited to, protection of public and employee safety and health; environmental protection; waste reduction and recycling; the protection of natural resources; permits; fees; taxes; and similar subjects. Dated this 15th Day of May 2023 Vicky Carlsen Finance Director 52 SECTION I: INTRDUCTION The City of Tukwila (“City”) is requesting interested municipal advisory firms to submit a proposal to develop: 1. a Comprehensive Financial Sustainability Plan (“Plan”) and, 2. a utility rate study for the City’s three utilities: water, sewer, and surface water (“Study”). The Plan will review the City’s operating and Capital Improvement Program expenditures, revenues, and multi-year projections with a focus on the City’s general fund and capital project funds. The goal is to provide short-term (2-5 years), a long-range (6-10 years) plan for the City that considers current and future programs, projects, and services the City offers, and future finances and the impact of limited revenue growth in the future of City services, infrastructure, and capital project needs. The Plan will be informed by an advisory group made up of community members and business representatives from Tukwila. It should include prioritized recommendations and implementation framework. Additionally, the Plan should also take into consideration the current and changing needs for programs and services offered as our residential and business communities grow and change. The Study should include a cost-of-service rate study, proposed rate design, and a comprehensive plan for financing major infrastructure maintenance and improvement projects. The City will consider long-term financial analysis and budget strategies developed by the selected firm or firms to continue to deliver the City’s services and capital projects and goals during a process that includes internal and external stakeholder outreach including presentations to the City Council. The Plan and Study are anticipated to be valuable tools to ensure that the City’s finances remain on a strong footing and provide the resources necessary to achieve the operational programs and services and capital improvements desired by our residential and business communities. The City’s goal is to have the selected firm or firms present their report (Plan and Study) no later than Spring of 2024 so that the short-term and long-range financial analysis and budget strategies can be presented and discussed by the City Council and incorporated into the next budgetary cycle. The Request for Proposal (RFP) provides information on the City of Tukwila, the City’s budget, future major capital and infrastructure initiatives (along with their proposed funding mechanisms), current revenue sources, utilities information and future budget challenges. The RFP describes the Plan project, the required scope of services, the consultant selection process, and the minimum information that must be included in the RFP Response. A. Background Tukwila was incorporated as a city in 1908 and encompasses 9.7 square miles. It is a Mayor- Council form of government, administered by a full-time independently elected Mayor, a seven- member City Council, and a City Administrator. The November 2024 General Election will include the election/re-election of up to four potential City Council positions as well as the Mayor. The city continues to grow and flourish as a center of commerce for South King County. As the 53 crossroad of two interstate highways – I-5 and I-405 – and within five minutes of an international airport, Tukwila is a local leader in retail/commercial sales, warehousing, and distribution of goods and manufacturing. The city has the largest retail mall in the pacific northwest: Southcenter Mall. While over 22,000 people reside in the city- the 18th largest city in King County- daytime population swells to 150,000 to 170,000 to work, shop and recreate. This creates unique demands and service challenges for the City. Nestled in the hills surrounding the major commerce corridors are quiet residential neighborhoods. Police, fire, schools, libraries and other vital services engage with residents to provide a desirable quality of life. Residents of the City enjoy small-town warmth, involvement and caring, while having the benefits of quality services and goods associated with larger cities. The City of Tukwila includes both single- and multi-family residences, heavy and light manufacturing, and service-oriented companies, as well as the Northwest's largest concentration of retail businesses. The City prides itself on its well-established economic base, relatively low debt burden, and strong financial management. The City is a full-service city with 9 departments including Police, Parks and Recreation, Public Works, Community Development, Municipal Court, Administrative Services, Finance, Mayor, and City Council. Fire services are currently contracted out to the Puget Sound Regional Fire Authority (“RFA”) with plans to ask voters to approve an annexation to the RFA effective January 1, 2024. The City currently has 294 full-time regular employees, where approximately 85% are represented (union) employees, as well as seasonal and part-time employees. Other taxing authorities with jurisdiction within the City of Tukwila, include Valley View Sewer District, Water District #125, Tukwila School District, Highline School District, Tukwila Pool Metropolitan Park District, to name a few. B. City Budget The City has a 2-year operating budget and 6-year Capital Improvement Program budget. The City’s 2023-2024 adopted general fund budget is as follows: The City’s adopted Capital Improvement Program (CIP) budget for the 2023-2028 cycle totals over $221 million in capital projects, with $141 million in general government projects. Almost all of the funding for the general government projects comes from dedicated revenue sources including impact fees, grants, LGTO debt, and real estate excise tax. 2023 2024 Total Personnel 38,419,625$ 41,069,075$ 79,488,700$ Supplies & Services 14,412,259 13,214,225 27,626,484 Intergovernmental 16,798,306 17,623,796 34,422,102 Capital 420,000 320,000 740,000 Transfers for Debt Service 4,749,828 4,206,345 8,956,173 Other Transfers Out 956,250 1,559,000 2,515,250 Total 75,756,268$ 77,992,441$ 153,748,709$ 54 As part of the City’s 2023-2024 budget, the City is beginning a full facilities study that will include capital needs as well as significant maintenance costs that will inform future budgets. The timeline for completing this study is expected to fit within the timeline for this project. Additionally, a Business and Occupation (B&O) tax was added as a new revenue source effective January 1, 2024. This new revenue stream is expected to bring in $3 million in new revenue each year. The 2023-2024 biennial budget is considered a “bridge budget’ in that the City is using one-time sources to fund ongoing operations. The decision was made to allow the use of one-time funds during this biennium only until voters either approve or reject a full annexation to the RFA. If the vote for annexation is positive, levy capacity with property taxes will be gained and could be a tool for funding currently reduced levels of service, should the City Council want to maintain service levels. If the ballot measure does not pass, then the City will be faced with very difficult decisions as revenues are not keeping up with the cost of providing current levels of services. C. FUTURE CHALLENGES The City has had a financial structural imbalance for several years with costs escalating faster than revenues and a continued desire to maintain, and even increase service levels. Expenditure budgets are still lower than pre-pandemic levels and all departments have need for additional staff. As previously mentioned, the City did implement a new revenue source, a B&O tax. When this tax was implemented, the City did not lower the business license fee. One challenge that the City has been tasked with is determining a fair mix of taxes for businesses with a possible outcome of lowering the business license fee for those businesses that will be paying the B&O tax. In addition to operational challenges, there is lack of adequate funding for infrastructure maintenance and several city facilities need to be either replaced or significantly upgraded. The Streamlined Sales and Use Tax Agreement (SSUTA) of 2008 allows Washington State to cooperate with multiple states and the business community to create a more uniform sales and use tax structure. Under SSUTA, sales tax sourcing changed from being based on origin of sales to being based on destination of goods purchased. In 2000, sales tax revenues of $18.5 million 55 were the largest revenue source for Tukwila, generally over 40% of total revenue. In 2012, sales tax of $15.0 million accounts for 23% of total revenues. The State established a mitigation fund to compensate localities that lost revenue from implementation of SSUTA, but it does not compensate for 100% of the loss and will disappear entirely in 2026. Since 2009 the City has received about $1.2 million in compensation for lost sales tax revenues, which – prior to SSUTA – would range from a high of $19.4 million in 2007 to a low of $14.4 million in 2009. A Metropolitan Park District exists within the City of Tukwila but it is structured to only provide services to a pool, not other parks and recreation functions, and activities as allowable under State law. The Tukwila Pool Metropolitan Park District has begun a feasibility study process to explore potential improvements to the 1960’s era community pool as well as developing a destination aquatics facility in the Southcenter mall area. However, the MPD leadership have indicated they will only support using a small portion of their taxing authority, $.015 per thousand. The City is also planning the final phase of the Public Safety Plan that voters approved in 2016. The full plan provided funding to replace two aging fire stations, build a justice center to house both the police and the municipal court, and locate all Public Works staff on a central site. All projects with the exception of the final phase of the Public Works Shops has now been completed. However, the final phase includes the construction of a facility to house the utilities’ function. Current estimates are up to $85 million to complete and a funding source will need to be identified. Median income in Tukwila is lower than surrounding cities, making it hard to increase fees for services without negatively impacting residents. The City of Tukwila owns and operates an 18-hole PGA-rated golf course that encompasses 77 acres of green space, a pro shop, restaurant and banquet space and maintenance facility. The City is in the process of renewing a multi-year concessionaire agreement for the restaurant/bar and banquet space, which upon execution will take effect July 1, 2023. While the golf course is operated as an enterprise fund, revenues are insufficient to cover all maintenance, pro shop services and capital costs. An annual General Fund contribution of $300,000 is presently relied upon for financial sustainability. The City has retained the National Golf Foundation to engage in a comprehensive business planning process that has just gotten underway. D. SCHEDULE AND CRITICAL PATH Planned kick-off for the Plan and Study early July 2023 with an expected completion date and final presentation to City Council no later than April 1, 2024. The City Council has placed a ballot measure before voters for August 1, 2023 to annex to the Puget Sound Regional Fire Authority. The outcome of this vote will have significant impacts to future budgets. Additionally, the City will have a new mayor in January of next year along with up to four new council members. 2 SCOPE OF WORK Subject to further discussion with the selected firm or firms, the City anticipates the scope will include the following services: 56 1) The Plan: - Review City programs and services as well as existing program and service levels. - Review City finances and forecasts, operating, and capital budgets. - Review current and upcoming major capital improvement initiatives, ongoing CIP projects, and infrastructure needs and incorporating into the review the facilities study. - Meet with each department, review programs and services, annual expenditures, and revenues generated by each department and review established ranking of City programs. - Analyze historical usage data and projecting future usage based on population and employment projections. - Develop and facilitate an advisory committee process with employees, labor partners, city advisory board/commission members, business representatives and community members to share initial menu of budget strategies and solicit feedback on the proposed Comprehensive Financial Sustainability Plan. - Develop a comprehensive set of fiscal sustainability strategies, including pros and cons to address the financial challenges that the City may/will face in the future with a focus on both the short-term (2-5 years) and long-range (6-10 years). This would include ways to fund services and projects over a multi-hear horizon. It should include options including new revenues, expenditure reductions, and expenditure transfers. The fiscal sustainability strategies would be prioritized and include a definition of each strategy, the fiscal benefit of each strategy, and an outline of the implementation steps, challenges, or ease of implementation. As part of this process, it will be critical to identify what services the City is legally required to provide, those that are operationally necessary such as human resources and finance functions. - Define a process for City Council to review, consider, and accept the Plan and the selected firm’s final report. - Present findings to the City Council and Tukwila Community. - Provide a calendar that outlines the steps in the process proposed by the selected firm that meets the City’s objective of having the final City Council review of the report and budget strategies by April 2024. 2) The Study: - Analyze the City's water supply and demand data to determine the appropriate rates for the water fund. - Analyze the City's sewer and surface water data to determine the appropriate rates for the sewer and surface water funds. - Create a 30-year rate model in the form of a flexible spreadsheet that can be adjusted over time. - Develop a report summarizing the findings of the study and providing recommendations for rate adjustments, subject to differing bond requirements. - Develop options to adjust funding as service levels change and grow. - Include periodic check ins with City Council and include workshops, if necessary. 3. PROPOSAL REQUIREMENTS A. Proposal Response In developing a response to this request for proposals, proposers should be concise, limiting their response to the specific questions and requirements set forth herein. The proposal should respond to each question or requirement below in consecutive order, as follows: 57 a. Transmittal letter The proposal must include a transmittal letter signed by a person within the firm who is authorized to bind the firm, preferably a lead consultant. RFP responses with unsigned transmittal letters will be rejected. The transmittal letter must include a representation by the proposer that, except as disclosed in the proposal, no officer or employee of the proposer is directly or indirectly a part to or in any other manner interested financially or otherwise in this RPF. b. Executive Summary and Understanding of Required Services An overview of the proposal (including the firm’s relevant experience), a summary of the proposer’s understanding about the requested scope of services, and its approach to providing these services. Include high-level approach to stakeholder engagement. c. Description of Proposer’s Firm A brief description of the firm’s background, size, office locations in Washington, and history as it may be relevant to the services required. Describe experience providing municipal advisory services for other public agencies and authorities, with an emphasis on Washington jurisdictions and agencies and federal authorities, any related projects, and studies on developing strategies to address budgetary and financial challenges and utility rate studies. Describe experience working with advisory committees made up of multiple stakeholders in a similar process with other public agencies and authorities. d. Proposer’s Personnel List all professional staff that will be assigned to the engagement and the area(s) of specialization for each person. Describe the role each person who will be assigned to the engagement. Identify the lead consultant who will be the primary contact in providing services to the City, and who will be listed as a “key person” in any agreement with the City. In an appendix, include professional biographies for all professionals who will be assigned to provide services in the proposal. e. Fees and Charges Provide the proposed fees for providing the services to complete this assignment. The proposal must state an “hourly” fee structure for the services contemplated and pricing for each of the major tasks outlined under the “Anticipated Scope of Work” section of this RFP. Provide the hourly rates to be billed for work performed and describe how customary reimbursable expenses will be charged, including attendance at meetings. f. References Please provide at least three (3) client references for whom your firm has performed similar work to that requested in this RFP during the past five (5) years. For each client, provide the name, street address, telephone number, and email address. g. Completed Reports Please provide two (2) completed reports that your firm has previously developed for cities, 58 counties, or local government agencies that are comparable to the project outlined in this RFP. 4. EVALUATION CRITERIA AND CONSULTANT SELECTION The selection of a Consultant will be based on qualifications to perform the requested services and successful negotiation of an agreement. The Consultant’s response to this RFP and subsequent interview, if necessary, will be utilized to select the firm or team of firms most qualified for this project. The City expects to assess the proposals based on evaluation criteria including the following, which are not necessarily listed in order of importance: 1. Quality of proposal and responses to specific questions included in this RFP. 2. Experience on similar fiscal analyses and reports for local government agencies in Washington. 3. Recommended implementation framework and process, including success of prior clients in implementing similar recommendations. 4. Experience successfully working with community and business stakeholders on a similar project. 5. Relevant qualifications of key personnel assigned to this project. 6. Accessibility of key personnel to the City’s staff during the project. 7. Understanding of the City’s objectives. 8. Reasonableness of fees and cost proposal. The City will select a municipal advisory firm based upon the responding firms’ qualifications and experience, together with its responses to the requests for information set forth above. It should be noted that none of these factors in and of themselves are determinative, and the City reserves the right to select one or more firms on any basis that are in the best interests of the City. The City may contact firms in response to questions raised in their proposals and the City reserves the right to cancel this solicitation without selecting any firms as well as selecting more than one independent firm to engage in the requested work. After the submittals are evaluated, the City, at its sole discretion, may elect to interview all, some, or none of the proposers. The interview will help clarify each proposal and the approach and qualifications for the project. Proposers may be asked to submit additional documentation at or after the interview stage. Based upon the interview and evaluation of the proposals, the top-ranked firm(s) will be recommended to the City Council. In addition, the City reserves the right to select (a) proposal(s) without conducting interviews or abandon this RFP. 5. CONDITIONS OF PROPOSAL ACCEPTANCE This RFP is not an offer by the City to contract and does not commit the City to award a contract, to pay any costs incurred in the preparation of a proposal for this RFP, or to procure or contract for any services. The City reserves the right to waive any irregularities or informalities contained with the RFP, and/or reject any or all proposals received as a result of this request; negotiate with any qualified source(s) or to cancel the RFP in part or whole. All proposals and material submitted will become the property of the City of Tukwila and public records, and will not be deemed confidential or proprietary. The City of Tukwila reserves the right to award in whole or in partw when such action serves the best interest of the City. The City and Consultant(s) may agree to add additional work to the 59 agreement by mutual agreement at a later date. The City may elect to stop work at any time in the contract and will pay for work completed to that point on a time and material basis. Potential proposers are advised to become familiar with all conditions, instructions, and specifications of this RFP, including the City’s standard Consultant Services Agreement. By submitting a proposal, Consultant represents and warrants that it has thoroughly examined and is familiar with work required under this RFP, that Consultant has conducted such additional investigation as it deems necessary and convenient, that Consultant is capable of providing the services requested by the City in a manner that meets the City’s objectives and specifications as outlined in this RFP, and that Consultant(s) has(ve) reviewed and inspected all materials submitted in response to this RFP. If and once the Consultant(s) has(ve) been selected, a failure to have read the conditions, instructions, and specifications herein shall not be cause to alter the contract or for Consultant(s) to request additional compensation. 6. CITY REQUIREMENTS If your firm is selected for this work, you will be required to maintain insurance including workers compensation insurance, and liability insurance in the amount of $2,000,000, with City required endorsements. Non-Discrimination Requirement By submitting a proposal, the Consultant represents that it and its subsidiaries do not and will not discriminate against any employee or applicant for employment on the basis of race, religion, sex, color, national origin, sexual orientation, ancestry, marital status, physical condition, pregnancy or pregnancy-related conditions, political affiliations or opinion, age, or medical condition. 7. AGREEMENT If a proposal is accepted, the consultant is required to enter into a contractual agreement with the City. 8. OFFICIAL CONTACT AND PROPOSAL SUBMISSION ADDRESS Upon release of this RFP, all communications concerning the RFP should be directed to the City’s Finance Director listed below. Unauthorized contact regarding this RFP with any other City employees may result in disqualification. Any oral communications will be considered unofficial and non-binding on the City. Any questions received, along with responses, will be posted on the City’s website. consultant(s) should rely only on written statements issued by the Finance Director. The City’s Finance Director is: Name: Vicky Carlsen Address: 6200 Southcenter Blvd, Tukwila, WA 98188 E-mail: vicky.carlsen@Tukwilawa.gov Phone: 206.433.1839 Proposals must be received at the following address by no later than 5:00 pm PDT on June 2, 2023. Respondents must submit their proposal via one (1) electronic copy (either flash drive or email attachment less than 50 mb) to: City of Tukwila Attn: Vicky Carlsen, Finance Director 60 6200 Southcenter Blvd Tukwila, WA 98033 Vicky.carlsen@tukwilawa.gov 61 9. OTHER: Withdrawal of Proposals Proposals may be withdrawn at any time prior to the submission time specified in this RFP, provided notification is received in writing. Proposals cannot be changed or withdrawn after the time designated for receipt. Rejection of Proposals – Waiver of Informalities or Irregularities The City reserves the right to reject any or all proposals, to waive any minor informalities or irregularities contained in any proposal, and to accept any proposal deemed to be in the best interest of the City. Proposal Validity Period Submission of the proposal will signify the Consultant’s agreement that its proposal and the content thereof are valid for 180 days following the submission deadline and will become part of the contract that is negotiated between the City and the successful consultant r. City License The consultant awarded said contract will be required to purchase a City Business License. Public Disclosure Notice Under Washington State law, the documents (including but not limited to written, printed, graphic, electronic, photographic or voice mail materials and/or transcriptions, recordings, or reproductions thereof) submitted in response to this request for proposals (the “documents”) become a public record upon submission to the City, subject to mandatory disclosure upon request by any person, unless the documents are exempted from public disclosure by a specific provision of law. Documents identified as confidential or proprietary will not be treated as such if public disclosure laws take precedence. If the City receives a request for inspection or copying of any documents provided by a consultant marked as confidential in response to this RFP, it will promptly notify the consultant at the address given in response to this RFP that it has received such a request. Such notice will inform the consultant of the date the City intends to disclose the documents requested and affording the consultant a reasonable opportunity to obtain a court order prohibiting or conditioning the release of the documents. The City assumes no contractual obligation to enforce any exemption. Any information contained in the proposal that the consultant desires to claim as proprietary or confidential, and exempt from disclosure must be clearly designated, including identifying the page and particular exception(s) from disclosure. The City will try to respect all material identified by the Supplier as being Proprietary or Confidential, but requests that consultants be highly selective of what they mark as Confidential. The City will make a decision predicated upon applicable laws and can choose to disclose information despite its being marked as confidential or proprietary. Marking the entire proposal as proprietary or confidential, and therefore, exempt from disclosure will NOT be accepted or honored and may result in disclosure of the entire proposal or disqualification of the proposal solely at the discretion of the City. Documents identified as confidential or proprietary will not be treated as such if public disclosure laws take precedence, the information is publicly available, the information is already in the City’s 62 possession, the information is obtained from third parties without restrictions on disclosure or the information was independently developed without reference to the Confidential information. Contract Award and Execution  The City reserves the right to make an award without further discussion of the proposal submitted. Therefore, the proposal should be initially submitted on the most favorable terms the consultants can offer. It is understood that the proposal will become a part of the official file on this matter without obligation to the City.  The consultant(s) (s) selected as the apparently successful consultant will be expected to enter into a negotiated contract with the City (“Negotiated Contract”).  The general conditions and specifications of this RFP as proposed by the City and the successful consultant's response, as amended by agreements between the City and the consultant, will become part of the Negotiated contract’s documents. Additionally, the City will verify consultant representations that appear in the proposal. Failure of the consultant's products to meet the mandatory specifications may result in elimination of the consultant from competition or in contract cancellation or termination.  The consultant agrees that this RFP, the consultant's response to this RFP (proposal) and a mutually agreed upon Statement of Work will be included as part of the executed Negotiated Contract.  If the selected consultant fails to sign a Negotiated Contract with the City within five (5) business days of delivery of the final contract, the City may elect to cancel the award and award the contract to the next-highest-ranked consultant.  No cost chargeable to the proposed contract may be incurred before receipt of a fully executed Negotiated Contract or unless otherwise agreed to in writing by both parties.  If mutually agreed upon terms cannot be negotiated, the City, at its sole discretion, may terminate negotiations and begin contract negotiations with the next highest scored RFP response. Other Compliance Requirements In addition to nondiscrimination and equal opportunity compliance requirements, the consultant awarded a contract shall comply with federal, state, and local laws, statutes, and ordinances aterrelative to the execution of the work. This requirement includes, but is not limited to, protection of public and employee safety and health; environmental protection; waste reduction and recycling; the protection of natural resources; permits; fees; taxes; and similar subjects. Ownership of Documents Any reports, studies, conclusions, and summaries prepared by the Proposer shall become the property of the City. Confidentiality of Information All information and data furnished to the consultant by the City, and all other documents to which the consultant's employees have access during the term of the contract, shall be treated as confidential to the City. Any oral or written disclosure to unauthorized individuals is prohibited. 63 64 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Laurel Humphrey, Legislative Analyst DATE: May 2, 2023 SUBJECT: City Council Rules of Procedure Update ISSUE Proposed revisions to City Council Rules of Procedure DISCUSSION The City Council adopted a comprehensive new Rules of Procedure in 2021 that incorporated various sources of information regarding City Council operations into one updated policy document adopted by resolution. The City Council at that time declared its intent to review the Rules on a biennial basis to ensure alignment with state law, current processes, and best practices. A minor update was made in 2022 to incorporate a new state law allowing remote meeting attendance by Councilmembers. Draft Rules of Procedure The attached proposed draft incorporates amendments and new additions in a few different categories: 1. 2023 City Council Retreat Outcomes The focus of the 2023 City Council Retreat held on 3/4/23 was on Council processes and working agreements. The facilitator issued a report including recommendations for working agreements, and the City Council convened a special work session on 3/13/23 to discuss these. City Council input from that meeting was incorporated into this draft. 2. Clarification and/or alignment with current practice Several amendments to existing language are included to provide clarity or expand on a concept. 3. Continuing to incorporate 2013 City Council Operating Procedures The City Council adopted a series of Operating Procedures in 2013. Staff’s goal has been to replace that format by incorporating the content into the Rules of Procedure so that there is one single source of information. This proposed update includes three more from that 2013 series, with just two remaining. 4. Minor housekeeping edits There are only a few of these, such as replacing all instances of “full Council” with “entire Council” as suggested by the City Attorney. 65 INFORMATIONAL MEMO Page 2 Consequences The current Rules are silent on any consequences for an individual Councilmember who does not abide to these agreed-upon standards. If the Committee would like to consider adding such language, the City Attorney has some suggestions that can be added to the next version. Consequences in other cities have included formal censure, removal of internal or external committee assignments, and more. Council Meeting Follow-Up At the March 13 retreat follow-up work session, the City Council discussed the need for assurance from City Administration that there will be follow-up to public comment as well as certain Council requests. Below is a summary of the current practice. Public Comment follow-up Members of the public often make comment that necessitates staff assistance either during or following the meeting. Staff members are almost always onsite and will frequently walk out to the lobby with the individual to provide information or advice on how the city may assist. Some public comments require staff to gather information or coordinate with a staff member not in attendance. In these cases, staff will connect with the commenter (if they left contact information on the sign-in sheet) as soon as is possible following the meeting. Public comments requiring follow-up are tracked by the Legislative Analyst in a log, where resolutions to comments are also added as they become available. This document is used to help populate the “Responses to Council/Community inquiries” section of the City Administrator Report that goes into Regular Meeting packets. Information about resolution to Council comments is also often provided to Councilmembers via email. Proposed Council Rule V(B)3 would require the Presiding Officer to make comments about how meeting follow-up may occur. Councilmember Inquiry Follow-Up Councilmember requests for additional information are also tracked in the Council meeting follow-up log maintained annually by the Legislative Analyst. This includes requests from individual Councilmembers as well as significant items requested by a Council majority. Responses to these items are given in the City Administrator report, via email, at a future meeting, or sometimes a combination of these methods. RECOMMENDATION Staff is seeking Committee feedback on the draft updated Rules. The Committee may want to review the next version or choose to forward the next version to the Committee of the Whole. ATTACHMENTS  Draft Rules of Procedure  Table of Amendments  Policies Proposed for Replacement 66 1 7/18/224/25/23 Rules of Procedure of the Tukwila City Council Introduction The Rules of Procedure set forth herein are adopted for the sole benefit of the members of the City Council to assist in the orderly conduct of Council business. These Rules of Procedure do not grant rights or privileges to members of the public or third parties. Failure of the City Council to adhere to these rules shall not result in any liability to the City, its officers, agents, and employees, nor shall failure to adhere to these rules result in invalidation of any Council act. I. City Council Powers and Duties A. City Council Authority 1. As the legislative branch of city government, the City Council is responsible for passing laws, setting the municipal budget, establishing policy, and other responsibilities defined by state law. 2. Decisions are made as a collective body and no individual member has any extraordinary powers beyond those of other members, except as described in Section I.B. 3. Members of the Council shall refrain from becoming directly involved in the administrative affairs of the City, including intervening in staff decision- making, scheduling or directing work, and executing priorities without the prior knowledge and approval of the City Council as a whole. 4. The City Council has no policy direction over judicial matters and members may not interfere with judicial processes or decisions. B. Council President – Mayor Pro Tempore 1. At the first Regular Meeting in January of each year, members of the City Council shall elect from their number a Council President who shall hold office at the pleasure of the Council. The general practice is to elect presidents in a rotating order by seniority, which is determined by the: a. Greatest consecutive number of years served; b. Greatest consecutive number of years plus months or years served prior to the current term(s); c. Number of votes when elected. 2. If the Councilmember who is next in line is unable to serve as Council President, they will notify the City Council in writing by the last Regular Meeting of the previous year. If this opt-out request is approved by the City Council, service will fall to the next Councilmember in the order of seniority. The Councilmember whose opt-out was accepted by the City Council will remain at the top of the rotation with the opportunity to serve as Council President the following year. 67 2 7/18/224/25/23 3. In the absence of the Mayor, the Council President shall become the Mayor Pro Tempore and perform the duties of the Mayor except that the Council President shall not have the power to appoint or remove any officer or to veto any ordinance. 4. If a vacancy occurs in the office of Council President, the City Council, at their next Regular Meeting, shall select a new Council President to serve the remainder of the year. 5. If a vacancy occurs in the office of the Mayor, the City Council, at their next Regular Meeting, shall elect from their number a Mayor who shall serve until a Mayor is elected and certified at the next municipal election. C. Working Relationship with City Administration 1. Councilmembers should approach work with a collaborative spirit, assuming that city staff also want a successful outcome toward what is best for the City of Tukwila. 2. Councilmembers should communicate with staff in a respectful tone that acknowledges their professionalism, experience, and expertise. 3. If a Councilmember has a concern with staff behavior or something a staff member says in any setting, they will address that concern to the Mayor and City Administrator. D. Requests for Administration Staff Assistance 1. Requests for staff time in the form of assistance or a work product should be made through appropriate channels, which are determined based upon the nature of the request. 2. Requests for staff time are either minimal, with limited impact, or significant, affecting schedules, work assignments, or staffing levels. 3. No Councilmember shall request or direct staff to initiate any significant action, project or study without the consent of a majority of the Council obtained during a Committee of the Whole or Regular or Special Meeting. 4. The City Council should consider existing City priorities, budget and staffing levels when deliberating such a request. If approved by the full Council, the request will be noted on an appropriate committee work plan. 5. Regardless of the level of staff assistance, written information provided by staff should be distributed to all Councilmembers. 68 3 7/18/224/25/23 II. City Council Meetings A. Regular Meetings 1. The City Council shall meet regularly on the first and third Mondays of each month, except those designated as City holidays, at 7:00 p.m. unless an alternative starting time is set and notice is provided to the public. 2. Regular Meetings will be held at Tukwila City Hall, 6200 Southcenter Boulevard, unless otherwise publicly noticed. 3. During Regular Meetings the City Council may take formal actions including, but not limited to, adopting ordinances or passing motions or resolutions. B. Committee of the Whole Meetings 1. The City Council shall meet as a Committee of the Whole on the second and fourth Mondays of each month, except those designated as City holidays, at 7:00 p.m. unless an alternate starting time is set and notice is provided to the public. 2. The Committee of the Whole shall meet at Tukwila City Hall, 6200 Southcenter Boulevard, unless otherwise publicly noticed 3. Meetings of the Committee of the Whole shall be held primarily to consider current issues, discuss policy matters in detail, and coordinate the work of the City Council. The Committee of the Whole will have no power to take final actions including, but not limited to, adopting ordinances or passing motions or resolutions. C. Special Meetings Special meetings may be called by the Mayor, Council President, or any three Councilmembers by delivering written notice personally, by mail, by fax, or by electronic mail to each member of the Council at least 24 hours before the time specified for the proposed meeting and with public notice made pursuant to RCW 42.30.080. D. Executive Sessions 1. The City Council may hold an Executive Session during a Regular Meeting, Special Meeting, or Committee of the Whole to consider certain matters of confidential concern as set forth in RCW 42.30.110. 2. Before convening an Executive Session, the Presiding Officer must publicly announce the purpose and the time upon which the Executive Session will be concluded. An Executive Session may be extended to a later time by public announcement by the Presiding Officer. 3. Councilmembers must keep confidential all written materials and verbal information provided during Executive Sessions. This prohibition continues to apply after an individual no longer serves on the City Council. 69 4 7/18/224/25/23 E. Retreats and Work Sessions 1. The full entire Council may meet periodically in a retreat or work session setting as deemed appropriate by the Council President or a quorum of the Council, respectively. 2. No final action will be taken at a retreat or work session. 3. Retreat and work session meetings are open to the public and subject to the requirements of RCW 42.30. F. Attendance 1. Councilmembers are expected to maintain reliable attendance at all types of meetings described above. 2. Pursuant to RCW 35A.12.060, a City Council position shall be forfeited if the Councilmember fails to attend three consecutive Regular Meetings without being excused by the Council. 3. A Councilmember wishing to be excused from a Regular Meeting will provide advance notice to the Council President or Legislative Analyst, who will in turn notify the other members of the City Council in advance of the meeting. G. Councilmember Remote Attendance at Meetings 1. In the event of an emergency as declared by the City, State and/or Federal government, the City Council may arrange for electronic participation at a Regular Meeting, Committee of the Whole, Special Meeting, Executive Session, retreat, standing committee meeting, or work session. a. During a fully-remote meeting, Councilmembers may attend by phone or other electronic means that allow all participants to hear one another. b. Fully-remote meetings are open to the public and arrangements must be conducted such that the public can hear the meeting while it is occurring, subject to the requirements of RCW 42.30. 2. In times of non-emergency, the City Council prefers and recognizes the value of in-person attendance at meetings as integral to public service. However, remote attendance by a Councilmember not physically able to be present, whether for all or part of a meeting, is allowed subject to the following provision: a. Councilmembers may attend remotely a maximum of five Regular or Committee of the Whole meetings per calendar year; provided the Council may, by majority vote, allow a Councilmember to attend additional meetings remotely in excess of five per year due to medical or other factors beyond the individual’s control. 70 5 7/18/224/25/23 b. A Councilmember planning to attend a meeting remotely should notify the Legislative Analyst and/or Council President no later than two hours prior to the meeting start time or 15 minutes prior to an emergency meeting. c. A Councilmember attending remotely will be marked present, counted toward a quorum, and can vote just as if physically present. d. If a Councilmember’s virtual connection should become lost during the meeting, the meeting should continue unless quorum is no longer met. A Councilmember’s loss of a virtual connection will not be counted toward the maximum limit described in Section 2.a. e. Councilmembers are expected to follow current pandemic quarantine procedures as recommended by Public Health – Seattle & King County. Remote attendance for this purpose will not be counted toward the maximum limit described in Section 2.a. III. Legislative Process A. City Council Business 1. Matters to be considered by the Council shall be placed on a standing committee, Committee of the Whole, or Regular Meeting agenda and include items required by law to be presented to Council, items requested by a majority of the Council, staff-initiated items in accordance with the City’s strategic priorities and work plan, and items referred from previous meetings. 2. As a general practice, legislative actions to come before the City Council for a decision should appear first before a standing committee, then the Committee of the Whole, then a Regular Meeting. Informational items not requiring a decision may be scheduled with more flexibility as the situation requires. 3. Items may be placed directly on the agenda of a Committee of the Whole or a Regular Meeting when the items are approved by the Council President, and the items are routine or in the event of an emergency. B. Legislative Actions 1. Ordinances are legislative items used to regulate matters of local concern, such as land use, animal control, local law enforcement and health and safety issues. Ordinances must comply with the terms of the U.S. and Washington State constitutions and the general laws of the City and State. Many ordinances are classified as “codifiable,” meaning the ordinance will be incorporated into the Tukwila Municipal Code, which makes the laws of the City easily accessible by subject matter. Examples of non-codifiable ordinances include the annual property tax levy and adoption of the budget. 71 6 7/18/224/25/23 Public emergency ordinances may take effect immediately upon final passage if passed by an affirmative vote of 5 Councilmembers. 2. Resolutions are legislative items that are advisory or policy-oriented in nature. Resolutions may be used to offer support for ballot measures, set hearing dates for a street vacation or update fee schedules. Resolutions are not a part of the Tukwila Municipal Code. Resolutions are signed by the Council President but are sometimes signed jointly with the Mayor, or prepared for signature by all Councilmembers, particularly when ceremonial or honorary in nature. 3. Motions are generally short statements to direct that a specific course of action be taken on behalf of the City. 4. All proposed ordinances and resolutions shall be reviewed by the City Attorney and bear the Attorney’s certification that they are in correct form before final passage. C. Meeting Agendas 1. The City Clerk shall be responsible for preparing agendas for Regular, Special, and Committee of the Whole meetings, and presented in a timely manner to the Council President or designee for approval. After the proposed agenda has been approved, the City Clerk shall publish the final agenda in accordance with the provisions of RCW 42.30. 2. The order of a Regular Meeting agenda shall be: a. Call to Order b. Pledge of Allegiance c. Roll Call d. Land Acknowledgement e. Public Comments — Including comment on items both on and not on the meeting agenda. f. Appointments and Proclamations g. Presentations — Items pertinent to the City but not relating to other agenda business, including honoring of guests, special awards, or speakers external to the City. h. Consent Agenda — Items that are routine or non-controversial in nature approved for inclusion by the Council President, Committee of the Whole, or forwarded by unanimous Committee action. Any Councilmember may request to remove an item from the Consent Agenda and place under New Business for further discussion. i. Public Hearings — May be required by City, State, or Federal law or directed by the Council. Examples include but are not limited to Local 72 7 7/18/224/25/23 Improvement Districts, zoning changes, biennial budget, annexation, moratoria, and quasi-judicial decisions. j. Unfinished Business — Items of a general nature, including resolutions and ordinances previously before a standing committee, the Committee of the Whole or full entire Council. k. New Business — Items of a general nature, including resolutions and ordinances not previously before a standing committee, the Committee of the Whole or full entire Council l. Reports — Brief summaries of significant City-related activities from the Mayor, City Council, and City Administrator. m. Miscellaneous — Significant City-related items that may need further Council discussion, action, or City Administration follow-up. n. Executive Session o. Adjournment 3. The order of a Committee of a Whole meeting agenda shall be: a. Call to Order b. Pledge of Allegiance c. Land Acknowledgment d. Public Comments — including comment on items both on and not on the meeting agenda. e. Presentations f. Public Hearings g. Special Issues — Items referred from Council committees, referred at a previous Council meeting, or approved for discussion by the Council President. h. Reports i. Miscellaneous j. Executive Session k. Adjournment or Adjournment to a Special Meeting 4. The order of a Special Meeting agenda follows the same order of Regular Meetings based on what items need to be addressed. The City Council may not take action on anything not listed on a Special Meeting agenda. IV. Meeting Conduct A. Presiding Officer 1. All Regular and Special Meetings of the City Council shall be presided over by the Mayor or, in the Mayor’s absence, by the Mayor Pro Tempore. 2. If neither the Mayor nor the Mayor Pro Tempore is present at a Regular or Special Meeting, the Presiding Officer for that meeting shall be appointed 73 8 7/18/224/25/23 by a majority vote of those Councilmembers present, provided there is a quorum, and the appointment of a Councilmember as Mayor Pro Tempore shall not abridge their right to vote on matters before the Council. 3. All Committee of the Whole meetings shall be presided over by the Council President. If the Council President is temporarily absent, the immediate Past President will serve in that capacity until the Council President returns. Council shall elect a Councilmember to serve in that capacity until the Council President returns. 4. The Presiding Officer shall preserve strict order and decorum, state all questions coming before the Council, provide opportunity for discussion on each item on the table, and announce the decision of the Council on all subjects. Procedural decisions made by the Presiding Officer may be overruled by a majority vote of the Council. B. Parliamentary Procedure Questions of parliamentary procedure not covered by these Rules of Procedure shall be governed by Robert'’s Rules of Order, Newly Revised (latest edition). C. Quorum 1. At all meetings of the City Council, four members shall constitute a quorum for the transaction of business. 2. Confirmations of appointments by the Mayor, budget transfers, personnel levels, and formal motions, resolutions, ordinances, and amendments thereto shall require the affirmative votes of four Councilmembers. D. Seating Members of the City Council will be seated at the Council dais in order of seniority, except that the Council President will be seated in the center during Committee of the Whole meetings and at the right of the Mayor during Regular and Special Meetings. E. General Meeting Decorum 1. While the City Council is in session, the members must preserve order and decorum and a member shall neither delay nor interrupt the proceedings or the peace of the Council, nor disrupt any member that has the floor. 2. Meeting participants should focus on the meeting agenda and confine remarks to the question or matter under discussion. 3. A Councilmember desiring to speak shall address the Presiding Officer and when recognized shall confine their remarks to the question under debate. 4. Councilmembers shall not be interrupted unless it is to be called to order. 74 9 7/18/224/25/23 5. No Councilmember shall speak a second time on the same item until each Councilmember has been given an opportunity to speak. 6. Councilmembers should speak respectfully to one another, to staff, and to members of the public. 7. Councilmembers should be attentive to speakers, minimizing distractions and refraining from side conversations. 8. Councilmembers should keep remarks brief, relevant, and nonduplicative. 9. Toward the goal of effective and efficient meetings, Councilmembers should arrive prepared, having reviewed materials in advance of the meeting. Clarifying questions may be directed to the City Administrator in advance of the meeting to allow for staff preparation. F. Motions, Debate, and Voting at Regular or Special Meetings 1. Prior to discussion of an action item, a Councilmember must make a motion, which must be seconded by another Councilmember, to place it on the table, except those motions described in subparagraph 3 below, which do not require a second. 2. Motions are generally encouraged to be made by a Committee Chair and seconded by a Committee member for those action items previously discussed in standing committees. 3. Motions not requiring a second include nominations, withdrawal of a motion, request for a roll call vote, and point of order. 4. After a motion has been made and seconded (if required), Councilmembers may discuss their opinions on the issue prior to the vote, including why they will vote for or against the motion. 5. Councilmembers may request a presentation or ask clarifying questions of staff prior to beginning debate. 6. If a resolution or ordinance, the City Clerk may read the item by title only or, if requested by any Councilmember, the document may be read in its entirety. 7. A motion may be withdrawn by the maker of the motion at any time. 8. A motion to amend is defined as amending a motion that is on the floor and has been seconded, by inserting or adding, striking out, striking out and inserting, or substituting. 9. A motion to call for the question shall close debate on the main motion and is nondebatable. This motion requires a second and fails without a two- thirds majority. Debate is reopened if the motion fails. 75 10 7/18/224/25/23 10. Motions shall be entertained in the order of precedence outlined in the current edition of Robert’s Rules of Order Newly Revised (latest edition). 11. The Regular or Special Meeting Consent Agenda is adopted by a single motion. 12. When the discussion is concluded, the Presiding Officer shall repeat the motion prior to voting. 13. Unless otherwise provided for by statute, ordinance, or resolution, votes will be taken by voice, unless a roll call vote is requested by the Presiding Officer or any Councilmember. Voting normally shall be by seniority; however, this procedure may be changed by the Presiding Officer. 14. Each member present must vote on all questions before the Council and may abstain only by reason of conflict of interest. 15. Silence of a Councilmember during a voice vote shall be recorded as an affirmative vote except where such a Councilmember abstains because of a stated conflict of interest. 16. No vote may be cast by proxy. 17. The City Council votes on the motion as restated and the Presiding Officer will state the results of the vote. 18. In case of a tie vote on any motion, the motion fails subject to conditions outlined in RCW 35A.12.100. 19. In cases where there seems to be no opposition, or on questions of little importance, the Presiding Officer may seek approval by unanimous consent. 20. When the Council concurs with an item that does not require a formal motion, the Presiding Officer will summarize the Council’s consensus at the conclusion of the discussion. G. Questions of Order All questions of order shall be decided by the Presiding Officer with the right of appeal to the majority of Councilmembers present. H. Adjournments 1. All meetings of the Council shall adjourn no later than 10:00 p.m., unless extended by majority approval of the Councilmembers present. If the Council desires to extend the meeting, a motion shall be required of a majority plus one vote or consensus of Councilmembers present. Items not acted on by the 10:00 p.m. deadline shall be deferred to the next respective Council meeting as Unfinished Business, unless Council, by a majority vote or consensus of members present, determines otherwise. 76 11 7/18/224/25/23 2. Any Committee of the Whole, Regular, adjourned Regular, Special, or adjourned Special Meeting may be adjourned in the manner as set forth in RCW 42.30.090. V. Public Participation A. Public Hearings: The following procedures shall apply to public hearings, except public hearings subject to Tukwila Municipal Code Chapters 18.104 through 18.116, which shall be subject to the procedures specified therein. 1. City staff will provide a report summarizing and providing context to the issue at hand. 2. The proponent shall speak first and is allowed 15 minutes to make a presentation. The Council may ask questions. 3. The opponent is allowed 15 minutes to make a presentation. The Council may ask questions. 4. Each side is then allowed 5 minutes for rebuttal. 5. After the proponents and opponents have used their speaking time, the Council may ask further clarifying questions of the speakers. 6. Members of the public who wish to address the Council on the hearing topic may speak for 5 minutes each. 7. Speakers are asked to sign in on forms provided by the City Clerk. 8. The Council may ask clarifying questions of speakers and the speakers may respond. 9. Speakers should address their comments to the City Council. 10. If a large number of people wish to speak to the issue, the Council may limit the total amount of comment time dedicated to the Public Hearing. 11. Once the Presiding Officer closes the public hearing, no further comments will be accepted, and the issue is open for Councilmember discussion. 12. Any hearing being held or ordered to be held by the City Council may be continued in the manner as set forth by RCW 42.30.100. B. Public Comment 1. Time is set aside at each Committee of the Whole and Regular Meeting for members of the public to address the Council about items both included and not included on the agenda. 2. Public comment is to allow members of the community to provide input to the City Council and should not interfere with the ability of the City Council to conduct its business. It is just one of many ways to engage with Councilmembers. 3. The Presiding Officer will open the public comment period by explaining how to sign up as well as how any necessary follow-up may occur. 77 12 7/18/224/25/23 The City Council will also accept public comment on an item at the point when that item is presented during the meeting agenda. Speakers will be limited to commenting once per item during a meeting. 4. Speakers are asked to sign in on forms provided by the City Clerk. 5. Speakers must wait to be recognized by the Presiding Officer. 6. Speakers are requested to first state their name for the record. 7. Speakers should limit their remarks to 5 minutes or less, unless granted additional time by the Presiding Officer or majority of the Council. 8. All remarks should be addressed to the Council as a whole and not to individual Councilmembers, City staff, or members of the audience. 9. No speaker may donate speaking time to another individual. 10. If a large number of people wish to speak to a particular issue, the Council may limit the total amount of comment time dedicated to that issue. 11. Comments should not be taken on items subject to quasi-judicial consideration unless it is during a specified public hearing. 12. Written comments may be submitted to the City Clerk or designee for distribution to the City Council. If seven copies are not provided by the submitter, copies will be distributed to the City Council by the next day. 13. The Council has the right to invite anyone to speak at times other than the public comment period, which is done by consensus, unanimous consent or majority vote. 14. In general, Councilmembers should refrain from engaging in dialogue with commenters, but exceptions can be made to briefly request clarifying information only. 15. Councilmembers should not call on staff to give answers to public commenters on the spot. 16. The Presiding Officer will thank each speaker in turn. C. Disruptions 1. Disruptions of a Council meeting are prohibited and include but are not limited to the following: a. Failure of a speaker to comply with the allotted public comment time. b. Outbursts from members of the public who have not been recognized by the Presiding Officer. c. Interfering with other individuals desiring to provide public comment. d. Behavior that intentionally disrupts or impedes attendance or participation at a meeting. 2. If an individual is disruptive, the Presiding Officer may terminate that individual’s comment period, request assistance to direct an individual to 78 13 7/18/224/25/23 their seat or, in extreme cases, request assistance in removing the individual from the meeting room. 3. If a meeting has become disrupted to the point of a failure of resuming business, the Presiding Officer should call for a motion to recess. 4. If order cannot be restored, the City Council may order the meeting room cleared and continue in session or may adjourn the meeting and reconvene at another location selected by majority vote of the members pursuant to RCW 42.30.050. Members of the press, except those participating in the disturbance, are allowed to attend, and final disposition may be taken only on matters appearing on the agenda. VI. City Council Committees A. Standing Committees 1. The City Council may choose to implement a framework of standing Committees, comprising three Councilmembers each, to aid in the transaction of its business. 2. The standing Committee titles, scopes of authority, and schedule will be adopted by resolution in January of each year. 3. The scopes of the standing Committees will be balanced in accordance with the City’s workload. 4. The Council President shall appoint the chair and membership of each Committee by the second Regular Meeting of each year. 5. The standing Committees shall consider and make policy recommendations to the City Council. Committees may at times refer items to the full entire Council with no recommendation. 6. Each Committee Chair shall report to the Council the findings of the committee. 7. Each Committee Chair may review and approve the Committee agenda and will approve Committee minutes before distribution. The Committee Chair can authorize the cancellation of a Committee meeting. 8. In the event a Committee member is unable to attend a meeting, another Councilmember may attend in the absent member’s place. If no replacement can be found, the meeting may still take place with two members. 9. Public comment is typically not accepted at Council committee meetings, but the Chair may make an exception in rare circumstances. B. Ad Hoc Committees The City Council may establish such ad hoc committees as may be appropriate to consider special matters that do not readily fit the standing committee structure or that require a special approach or emphasis. 79 14 7/18/224/25/23 VII. Council Vacancies A. Vacancy A Council position becomes vacant upon the resignation, recall, forfeiture of position, or death of a Councilmember. The remaining members of the governing body shall appoint a qualified person to fill the vacant position. B. Resignation 1. A written resignation including an effective date must be submitted to the City Council in writing. 2. The City Council accepts a resignation by a motion and vote. C. Appointment If a vacancy occurs in the office of Councilmember, the Council will follow the procedures outlined in RCW 35A.12.050. To fill the vacancy with the most qualified person available until an election is held, the Council will widely distribute and publish a notice of the vacancy, the procedure, and any application form for applying. The application forms will be used in conjunction with an interview of each candidate to aid the Council selection of the new Councilmember. VIII. Public Records Compliance Other Responsibilities A. Public Records Act Compliance 1. Each Councilmember is responsible for complying with RCW 42.56, laws that govern public records. 2. Paper and electronic records that relate to the functional responsibility of the recipient or sender as a public official constitute a public record, which is subject to public inspection in accordance with RCW 42.56. 3. Councilmembers should send and receive messages related to City business through the City’s email system 4. Emails and/or text messages transmitted through personal accounts and devices are public records and must be retained accordingly. 5. Councilmembers shall not communicate in any electronic format with another Councilmember during a Council meeting. 6.5. Social media posts are a public record. Wherever possible, posting should contain links directing users back to the City’s official website for in-depth information, forms, documents, or online services necessary to conduct official City business. 7.6. Public records created or received by a Councilmember will be transferred to the Legislative Analyst for retention by the City in accordance with retention requirements under state law. 8.7. Public records that are duplicates of those in the possession of City staff, such as meeting agendas, are not required to be retained. 80 15 7/18/224/25/23 B. Open Public Meetings Act Compliance 1. If a quorum of the City Council is anticipated at a community or regional event or meeting, the Legislative Analyst or designee will evaluate the circumstances to determine if a notice of attendance or Special Meeting is needed. 2. For events not related to City business, four or more Councilmembers may attend, but may not discuss City business. 3. For events related to City business where a notice of attendance or Special Meeting has not been issued, three Councilmembers may attend. A fourth arriving member will need to leave. 4. Councilmembers should not engage in email or text threads or other communications involving a quorum of the Council. 5. Councilmembers should refrain from commenting on social media conversations involving other Councilmembers. 6. Councilmembers shall silence cell phones and other electronic devices during meetings. To maintain transparency and to ensure that all discussion and deliberation occurs publicly on the record, Councilmembers shall not communicate in any electronic format with another Councilmember during a Council meeting. C. Code of Ethics 1. Councilmembers must comply with the Code of Ethics for Elected Officials as codified at Tukwila Municipal Code Chapter 2.97 2. Councilmembers shall not attempt to coerce or influence staff to engage in any act that is in conflict with, or creates an appearance of conflict with, the performance of official duties as cited in the City’s Code of Ethics for Employees and Appointed Officials as codified at Tukwila Municipal Code Chapter 2.95. IX. Joining the City Council A. Swearing-in 1. As provided for in RCW 29A.60.20, Councilmembers shall take an official oath of office upon commencement of their term of office. The oath may be given by the Mayor, City Clerk, or a judicial officer and will be recorded with King County a. Newly elected Councilmembers will take an oath of office at the first Regular or Special Council meeting after the first of the year. b. Newly appointed Councilmembers will take an oath of office at the first Regular or Special Council meeting following their appointment. 81 16 7/18/224/25/23 B. Orientation 1. New Councilmembers will be scheduled for orientation meetings with the Mayor, City Administrator, Legislative Analyst, City Clerk, each Department Director, and the City Attorney within 30 days of election or appointment. 2. New Councilmembers are expected to review the City of Tukwila Councilmember Handbook, City Council Rules of Procedure, the Equity Policy, the AWC Mayor and Councilmember Handbook, and other relevant information. C. Required Training Councilmembers shall receive the training required by the State of Washington on the fundamentals of the Open Public Meetings Act (OPMA), Public Records Act (PRA), and records retention requirements per RCW 42.56.150. D. General Training Councilmembers are encouraged to attend training on the role of a City Councilmember such as that which is offered by Association of Washington Cities. X. Councilmember Travel and Training A. Purpose 1. Councilmembers are encouraged to be actively involved in city, county, state, regional and national organizations for the benefit of the Tukwila community. 2. Councilmembers may travel and attend training, education sessions, conferences, and meetings, and reasonable expenses will be reimbursed in accordance with city procedures applicable to employees and officials, subject to budgetary limit set by the full Council. 3. Councilmembers should report out on conferences and trainings attended. B. Travel Budget 1. Budgets for City Council travel and training will be set during the biennial budget adoption and adjusted through the annual budget amendment process, if necessary. 2. All Councilmembers will have discretionary access to travel funds. 3. The entire Council, by majority, will make the final decision on use of funds should issues arise. C. Travel Expenses 1. Councilmembers should exercise prudent judgment in incurring travel expenses on official city business. 2. Expenses eligible for reimbursement include standard (coach) airfare, baggage fees, ground transportation, mileage, registration, lodging, and meals (except alcohol). 82 17 7/18/224/25/23 3. All receipts must be retained and submitted for processing in accordance with current procedures established by the Finance Department. 4. Councilmembers may reserve a City vehicle for business travel when available. XI. Voucher Review A. Purpose 1. Vouchers are the checks with which the City pays its bills. Before the entire Council approves vouchers on the Consent Agenda at a Regular or Special meeting, each transaction has gone through multiple layers of review, starting with the individual staff person responsible for the payment, to supervisor, and, if appropriate, the Department Director depending on dollar threshold. Each transaction is then reviewed by designated Finance Department staff for final authorization and issuance. These checks and balances help protect the City and provide assurance that all claims presented for payment are complete and in compliance with established budget and policies. 2. At the beginning of each year, the Legislative Analyst will create a schedule rotating the task among all Councilmembers. 3. The obligation of the Councilmember providing the review is to gain a general understanding of City expenditures and ensure alignment with city budget and policies. 4. If the Councilmember has a concern about any expenditure and how it fits with established budget and policies, they should request background information or clarification from the Finance Director or designated staff. In rare cases, the Councilmember may want to alert the full Council prior to voucher approval. 5. The reviewing Councilmember should verbally attest to their review prior to the City Council’s approval of vouchers on a Consent Agenda. 83 84 Attachment 1 Number Rule Description I. City Council Powers and Duties C. Working Relationship with City Administration I(C) 1. Councilmembers should approach work with a collaborative spirit, assuming that city staff also want a successful outcome toward what is best for the City of Tukwila. 2. Councilmembers should communicate with staff in a respectful tone that acknowledges their professionalism, experience, and expertise. 3. If a Councilmember has a concern with staff behavior or something a staff member says in any setting, they will address that concern to the Mayor and City Administrator. New Retreat outcome D. Requests for Administration Staff Assistance I(D) 1. Requests for staff time in the form of assistance or a work product should be made through appropriate channels, which are determined based upon the nature of the request. 2. Requests for staff time are either minimal, with limited impact, or significant, affecting schedules, work assignments, or staffing levels. 3. No Councilmember shall request or direct staff to initiate any significant action, project or study without the consent of a majority of the Council obtained during a Committee of the Whole or Regular or Special Meeting. 4. The City Council should consider existing City priorities, budget and staffing levels when deliberating such a request. If approved by the full Council, the request will be noted on an appropriate committee work plan. 5. Regardless of the level of staff assistance, written information provided by staff should be distributed to all Councilmembers. New Replaces existing CC-POL-02 II. City Council Meetings D. Executive Sessions II(D)3 Councilmembers must keep confidential all written materials and verbal information provided during Executive Sessions. This prohibition continues to apply after an individual no longer serves on the City Council. Amendment to further clarify legal obligations. III. Meeting Conduct A. Presiding Officer 8 5 IV(A)3 All Committee of the Whole meetings shall be presided over by the Council President. If the Council President is temporarily absent, the immediate Past President will serve in that capacity until the Council President returns. Council shall elect a Councilmember to serve in that capacity until the Council President returns. Amendment to simplify the practice. E. General Meeting Decorum IV(E) 6. Councilmembers should speak respectfully to one another, to staff, and to members of the public. 7. Councilmembers should be attentive to speakers, minimizing distractions and refraining from side conversations. 8. Councilmembers should keep remarks brief, relevant, and nonduplicative. 9. Toward the goal of effective and efficient meetings, Councilmembers should arrive prepared, having reviewed materials in advance of the meeting. Clarifying questions may be directed to the City Administrator in advance of the meeting to allow for staff preparation. New Retreat outcome H. Adjournments IV(H)1 All meetings of the Council shall adjourn no later than 10:00 p.m., unless extended by majority approval of the Councilmembers present. If the Council desires to extend the meeting, a motion shall be required of a majority plus one vote of Councilmembers present. Items not acted on by the 10:00 p.m. deadline shall be deferred to the next respective Council meeting as Unfinished Business, unless Council, by a majority vote of members present, determines otherwise. Amendment to provide flexibility to cover Committee of the Whole, Regular and Special meetings. IV. Public Participation B. Public Comment V(B)2 Public comment is to allow members of the community to provide input to the City Council and should not interfere with the ability of the City Council to conduct its business. It is just one of many ways to engage with Councilmembers. Amendment Retreat outcome V(B)3 The Presiding Officer will open the public comment period by explaining how to sign up as well as how any necessary follow-up may occur. New Retreat outcome V(B)4 The City Council will also accept public comment on an item at the point when that item is presented during the meeting agenda. Speakers will be limited to commenting once per item during a meeting. Proposed for deletion, covered by #13 V(B)14 In general, Councilmembers should refrain from engaging in dialogue with commenters, but exceptions can be made to briefly request clarifying information only. Amendment to provide more flexibility. Retreat outcome. V(B)15 Councilmembers should not call on staff to give public answers on the spot. New Retreat outcome 8 6 V(B)16 The Presiding Officer will thank each speaker in turn. New Retreat outcome C. Disruptions V(C)4 If order cannot be restored, the City Council may order the meeting room cleared and continue in session or may adjourn the meeting and reconvene at another location selected by majority vote of the members pursuant to RCW 42.30.050. Members of the press, except those participating in the disturbance, are allowed to attend, and final disposition may be taken only on matters appearing on the agenda. Amendment to pull in more language from RCW for clarity. VI. City Council Committees A. Standing Committees VI(A)9 Public comment is typically not accepted at Council committee meetings, but the Chair may make an exception in rare circumstances. New to match common practice. VII. Council Vacancies B. Resignation VII(B) 1. A written resignation including an effective date must be submitted to the City Council in writing. Amendment to eliminate redundancy. VIII. Public Records Compliance Other Responsibilities A. Public Records Act Compliance VIII(A)5 Councilmembers shall not communicate in any electronic format with another Councilmember during a Council meeting. Removes #5 to be added under OPMA Compliance in new section. B. Open Public Meetings Act Compliance VIII(B) 1. If a quorum of the City Council is anticipated at a community or regional event or meeting, the Legislative Analyst or designee will evaluate the circumstances to determine if a notice of attendance or Special Meeting is needed. 2. For events not related to City business, four or more Councilmembers may attend, but may not discuss City business. 3. For events related to City business where a notice of attendance or Special Meeting has not been issued, three Councilmembers may attend. A fourth arriving member will need to leave. 4. Councilmembers should not participate in email or text threads involving a quorum of the Council. 5. Councilmembers should refrain from commenting on social media conversations involving other Councilmembers. 6. Councilmembers shall silence cell phones and other electronic devices during meetings. To maintain transparency and to ensure that all discussion and deliberation occurs publicly on the record, Councilmembers shall not communicate in any electronic format with another Councilmember during a Council meeting. New Matches current practice and state law Retreat outcome (#6) 8 7 C. Code of Ethics VIII(C) 1. Councilmembers must comply with the Code of Ethics for Elected Officials as codified at Tukwila Municipal Code Chapter 2.97 2. Councilmembers shall not attempt to coerce or influence staff to engage in any act that is in conflict with, or creates an appearance of conflict with, the performance of official duties as cited in the City’s Code of Ethics for Employees and Appointed Officials as codified at Tukwila Municipal Code Chapter 2.95. New IX. Joining the City Council A. Swearing-in IX(A) 1. As provided for in Revised Code of Washington 29A.60.20, Councilmembers shall take an oath of office upon commencement of their term of office. The oath may be given by the Mayor, City Clerk, or a judicial officer and will be recorded with King County. 2. Newly elected Councilmembers will take an oath of office at the first Regular or Special Council meeting after the first of the year. 3. Newly appointed Councilmembers will take an oath of office at the first Regular or Special Council meeting following their appointment. New, matches current long- standing practice B. Orientation IX(B) 1. New Councilmembers will be scheduled for orientation meetings with the Mayor, City Administrator, Legislative Analyst, City Clerk, each Department Director, and the City Attorney within 30 days of election or appointment. 2. New Councilmembers are expected to review the City of Tukwila Councilmember Handbook, City Council Rules of Procedure, the Equity Policy, the AWC Mayor and Councilmember Handbook, and other relevant information. New, matches current practice C. Required Training IX(C) Councilmembers shall receive the training required by the State of Washington on the fundamentals of the Open Public Meetings Act (OPMA), Public Records Act (PRA), and records retention requirements per RCW 42.56.150. New, points to RCW D. General Training IX(C) Councilmembers are encouraged to attend training on the role of a City Councilmember such as that which is offered by Association of Washington Cities. New 8 8 X. Councilmember Travel and Training A. Purpose 1. Councilmembers are encouraged to be actively involved in city, county, state, regional and national organizations for the benefit of the Tukwila community. 2. Councilmembers may travel and attend training, education sessions, conferences, and meetings, and reasonable expenses will be reimbursed in accordance with city procedures applicable to employees and officials, subject to budgetary limit set by the full Council. 3. Councilmembers should report out on conferences and trainings attended. B. Travel Budget 1. Budgets for City Council travel and training will be set during the biennial budget adoption and adjusted through the annual budget amendment process, if necessary. 2. All Councilmembers will have discretionary access to travel funds. 3. The entire Council, by majority, will make the final decision on use of funds should issues arise. C. Travel Expenses 1. Councilmembers should exercise prudent judgment in incurring travel expenses on official city business. 2. Expenses eligible for reimbursement include standard (coach) airfare, baggage fees, ground transportation, mileage, registration, lodging, and meals (except alcohol). 3. All receipts must be retained and submitted for processing in accordance with current procedures established by the Finance Department. 4. Councilmembers may reserve a City vehicle for business travel when available. New Replaces existing POL-CC-06 Matches current practice 8 9 XI. Voucher Review A. Purpose 1. Vouchers are the checks with which the City pays its bills. Before the entire Council approves vouchers on the Consent Agenda at a Regular or Special meeting, each transaction has gone through multiple layers of review, starting with the individual staff person responsible for the payment, to supervisor, and, if appropriate, the Department Director depending on dollar threshold. Each transaction is then reviewed by designated Finance Department staff for final authorization and issuance. These checks and balances help protect the City and provide assurance that all claims presented for payment are complete and in compliance with established budget and policies. 2. At the beginning of each year, the Legislative Analyst will create a schedule rotating the task among all Councilmembers. 3. The obligation of the Councilmember providing the review is to gain a general understanding of City expenditures and ensure alignment with city budget and policies. 4. If the Councilmember has a concern about any expenditure and how it fits with established budget and policies, they should request background information or clarification from the Finance Director or designated staff. In rare cases, the Councilmember may want to alert the full Council prior to voucher approval. 5.The reviewing Councilmember should verbally attest to their review prior to the City Council’s approval of vouchers on a Consent Agenda. New Replaces existing POL-CC-07 Matches current practice 9 0 P r o p o s e d f o r r e p l a c e m e n t b y n e w C o u n c i l R u l e I ( D ) 9 1 P r o p o s e d f o r r e p l a c e m e n t b y n e w C o u n c i l R u l e X : C o u n c i l m e m b e r T r a v e l a n d T r a i n i n g 9 2 93 P r o p o s e d f o r r e p l a c e m e n t b y n e w C o u n c i l R u l e X I 9 4